"Parking"

"PARKING"  -  WHAT IT MEANS IN BUSINESS
How is this practiced? According to the SEC(Aug. 30-Sept.5 issue of Bloomberg Businessweek, p.76), a certain company ships hundreds of thousands of merchandise to distributors and repurchase them after they had booked the sales, disguising the repurchase as "assorted products." Effect: huge tax deductions business' as capital investment. The truth: They repurchased their own products.

This is what Bloomberg calls as "Grand Theft." That's why in 2005, Hillary ClintoN, then a New York senator, called for federal investigation. A $7.5 million in penalties was "awarded" to one sneaky toy company in that same year. The said company paid the penalty without admitting wrongdoing. Plus, in 2007, this company's CEO was also "awarded" another $7.26 million fine for falsifying records in a stock option. Thank God this CEO has been fired by the company's governing board.

Another meaning of the term "parking," is when a business company sends its profits to offshore banks, such as in the Cayman Islands and other offshore banks to "park" or hide their money from Uncle Sam.

Moral of the story: "No Parking Anytime."
JNR/ revised 8/25/2012