Owners avoid taxes
The owners of the scandal-ridden healthcare company Carema have maxed out their tax planning, reports newspaper Dagens Industri. The little-known Swedish venture capital company Triton has used inflated internal interest rates to create a tax reduction of 495 million Swedish kronor, or US$ 75 million, a year.
The tax reduction allows Carema to cancel out its profits and avoid paying taxes in Sweden. Sweden's Finance Minister Anders Borg has criticized the loophole in the Swedish tax code, but no action has been taken yet to change the law.
Several weeks ago, newspaper Dagens Nyheter began reporting about abuses and neglect in several of Caremas' elderly care facilities. Since then, more reports have revealed company-wide bonus schemes to entice managers to maximize savings. Those schemes have since been cancelled.