By Dan Smith, 15 May 2021
“The use of the term ‘leaks’ implies that this is an accidental and unavoidable phenomenon, but the truth is that it masks a deliberate and concealed strategy of profit extraction and aggressive tax avoidance employed by private equity-owned social care providers via complex and confusing company structures. Indeed, according to the CHPI, £261 million of the annual income received by the 26 largest care home providers in the UK goes toward paying off their debts – but 45% of this is payments to related, and often offshore, companies.
Many of these companies structure UK investments through subsidiaries in tax havens as a way to avoid paying taxes on profits generated from UK operations. A recent report by CICTAR, a global corporate tax research centre, found that three UK care home companies—Sunrise, Gracewell, and Signature Senior Living (all owned by Revera)—charged residents more than £225 million in fees in 2019, but reported little or no profit in the UK and even claimed multiple tax credits.”
Read more on The Tribune website.