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.