As a small business owner, determining methods to avoid taxation is not an issue of principle; it is an issue of survival. The easiest example: suppose you score a six-month contracting gig, followed by a year of no work. If you begin the contract on the first of January, you report all $100,000 of your income in a single taxable year. As a result, your tax bracket is ridiculous. Now, suppose you began the work on the first of June, and are paid weekly. In one taxable year, you make $50,000, and in the next, $50,000. As a result, your income more accurately models reality.
That said, I read a Wikipedia article about Hollywood accounting, and found it unscrupulous.
Oh, if there were something that I could do to increase the overhead costs associated with the production of software!!