What happened
SVT's Uppdrag granskning has revealed extensive fraud involving the ROT deduction. By filling out a digital application, a reporter was able to receive money without proof that any work had been carried out. Construction business owner Patrik Jonsson in Eskilstuna states that his company has completed at least a thousand jobs since 2008, but has only been checked by Skatteverket on three occasions. Both the trade union Byggnads Mälardalen and business owners are now calling for more checks to reduce fraud. Patrik Lillqvist, head of intelligence at Skatteverket, states that the authority stopped 193 000 payouts last year.
Our analysis
Skatteverket bears responsibility for oversight, but three checks across a thousand jobs since 2008 shows how rarely companies are actually audited. At the same time, the figure of 193 000 stopped payouts in one year demonstrates how extensive attempts to exploit the system are. The reporting focuses on the agency's administration, but fails to mention how fraud and inadequate oversight distort competition for the workers who actually do the work at construction sites. If the industry is to become sound, Skatteverket must increase the number of physical inspections and require supporting documentation before tax money is paid out.
Explained
The ROT deduction is a state tax deduction that entitles private individuals to lower labor costs when hiring tradespeople in the home.
Source: SVT Nyheter