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It's worse than you think. Tip of the Iceberg actually... You invest and you get 100%+ of your investment back tax free.

The way it was explained to me by one sleazy bugger is they get funds from large accounting firms who take money from their rich clients and take a cut from the clients. Then the fat accounting firms take a cut from Sleazy film industry fat cat financiers; then these fat cats find a filmmaker looking for a budget of 5 or 6 million dollars for their film.
They make tha filmmaker compliant and happy by raising 10 million for the film and taking big fees and cuts from the inflated budget.
Then they inflate the budget on paper to say 100 million dollars (90 million in fake fees and costs not actually spent). Then they claim tax refunds/rebate on the "100 million dollar movie" where 10 million was actually spent.

That tax robbery is the real scam that will trigger a scandal if there are audits...

But what's the harm in millions for Creative accounting firms/fat cat financiers/sleazy producers as long a few artists and filmmakers are able to make a subsistence living from piecework they get on film sets a few times a year. Isn't that a tangible benefit to arts and culture? Is there a better way?

I'd mention the names of the Accounting firms but they just change their names and pay a nominal fine each time they get caught, so it's hard to keep track of them...