Scott Marks 1 p.m., May 5
Ask Parsky about His Offshore Adventures
Rancho Santa Fe moneybags Gerald Parsky is chairperson of a supposedly bipartisan blue-ribbon commission on California taxation. Hardly surprisingly, so-called conservatives on the commission are pushing initiatives that would reduce taxes of the rich and increase them for the middle class and poor. These initiatives include a flat income tax and elimination of the corporate income tax. My question: has anybody asked Parsky about his own activities in the secrecy-shrouded Caribbean tax haven of the Cayman Islands? Parsky's firm, Aurora Capital Group, buys companies with borrowed money and then sells stock to the public. Filings show that when taking control of companies, Aurora Capital set up entities in the Caymans controlled by Aurora partners, including Parsky. Why? There are no capital gains taxes in the Caymans. And there are no corporate or personal income taxes, withholding taxes, gift or inheritance taxes, sales taxes, or employment taxes. I revealed all this in a Reader column of June 15, 2006. The column mentioned that the Caymans may have been used to avoid disclosing certain matters, rather than for tax considerations. (Or in addition to tax considerations.) The major reasons may have been avoiding capital gains taxes, although there could have been other reasons. At the time, Parsky would not respond to my requests for information.