(29 january 2021) A new report from the Center for International Corporate Tax Accountability and Research shows how Revera – a major private care home operator – is using aggressive tax avoidance schemes. Revera operates over sixty care homes in the UK under three brand names. However, many of these UK-based care homes are owned via dozens of tax haven subsidiaries in Jersey, Guernsey and Luxembourg.
The report details how the company’s care homes in the UK generate large revenues from patients, while the company appears shift much of their profits offshore.
Despite recent public scandals such as LuxLeaks and the Panama Papers, the report demonstrates how pension funds still enable corporations to set up complicated tax structures using Luxembourg as a kind of tax haven, in order to avoid paying taxes. These practices are extremely harmful to society. Tax avoidance deprives public services of the funding that is required for high quality services.
Other Canadian pension funds such as the Canadian Public Pension Investment Board also have large share-holdings holdings in European care companies like ORPEA. The European Parliament Tax committee should explore how these multinational care companies, which often rely on public contracts, avoid paying taxes, and take firm action against such practices.
For more information
Read the full Report: Tax Dodging by a Canadian Crown Corporation