According to Abba: The Official Photo Book, published to mark 40 years since they won Eurovision with Waterloo, the band’s style was influenced in part by laws that allowed the cost of outfits to be deducted against tax – so long as the costumes were so outrageous they could not possibly be worn on the street.
Band member 1 makes a costume for band member 2. Material cost: $12. Band member 1 sells it to band member 2 for $15,000.
Band member 2 makes costume for band member 3…
Write off not just the materials cost, but the purchase price.
The costume making income is below the taxable income so it’s not taxed.
Band income goes into a trust, rather than being paid directly to members. Members are all board members on the trust and get paid a salary.
And so it goes, round the washing machine of accounting.