How the Board of Tax Appeals Changed Hollywood History

9 Pages Posted: 13 Jan 2003 Last revised: 17 Jul 2012

See all articles by Allen Rostron

Allen Rostron

University of Missouri at Kansas City - School of Law

Abstract

Everyone remembers when Charlton Heston, as Moses, held his staff toward the heavens and the Red Sea parted in Cecil B. deMille's epic motion picture The Ten Commandments. Few know the curious tale of tax law that lies behind it. In the early 1930s, the Bureau of Internal Revenue claimed that Cecil and his brother, William C. deMille, also a successful motion picture director, had used personal service corporations to avoid huge amounts of income tax. The deMilles fought the charges. One brother emerged victorious, his career flourished, and he later gave credit to the wisdom of a tax court judge for making it possible for him to make legendary films like The Ten Commandments. The other brother lost, never made another motion picture, and blamed the nation's repressive tax regime for his troubles. This is the story of how the accumulated earnings tax and two decisions by the Board of Tax Appeals changed Hollywood history.

Suggested Citation

Rostron, Allen K., How the Board of Tax Appeals Changed Hollywood History. Tax Lawyer, Vol. 55, No. 4, 2002. Available at SSRN: https://ssrn.com/abstract=366640

Allen K. Rostron (Contact Author)

University of Missouri at Kansas City - School of Law ( email )

5100 Rockhill Road
Kansas City, MO 64110-2499
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
13
Abstract Views
750
PlumX Metrics