Last Updated on Wednesday, 18 July 2012 11:02 Written by Kevin Kerrigan Tuesday, 17 July 2012 18:45
Guam News - Guam News
Guam - Amidst questions raised about TakeCare's corporate status, Guam Economic Development Administrator Karl Pangelinan told PNC News Tuesday that TakeCare's Qualifying Certificate remains valid.
According to documents obtained by PNC News, on December 9th of last year, TakeCare COO Jeffrey Larsen issued a "Notice of Termination and Transfer of Employment" to TakeCare employees which terminated their employment with TakeCare effective December 31 and transferred their positions to Veiovis LLC.
READ the December 9th "Notice of Termination and Transfer of Employment" letter HERE
"Veiovis offers you continued employment conditioned upon your execution of the enclosed General Release of All Claims," states the letter, which concludes "if you fail to return an executed Release as required above, your employment will be terminated December 31, 2011."
It is not clear how many employees were affected and whether this change applied to TakeCare's Senior Management as well. But the migration of employees from one corporate entity to another raised the question of whether TakeCare's QC, [which requires a certain number of local employees], was effected by this change.
We put the question to GEDA Administrator Pangelinan who emailed this response:
"From GEDA’s perspective Take Care QC is still valid," said Pangelinan adding, "we still deal with Take Care Insurance (not this Veiovis entity) and their pertinent staff members are still the same individuals we’ve dealt with through the years."
TakeCare publicly announced the launch of Veiovis more than 2 years ago as a medical referral service company.
Rev and Tax Regulatory Administrator John Carlos described Veiovis and TakeCare as being "affiliated" because of common shareholders, but they are separate corporate entities.
READ TakeCare's 2011 audited Financial Statement HERE
TAKECARE's QC:TakeCare, then known as PacificCare, first received a QC in January 2001, providing the firm with a 100% rebate on "all income tax[es] ... received from insurance underwriting .. including all income derived from investing funds...". In exchange the company must employ 94 full time employees of whom 75% "shall be United States citizens or permanent residents" as well as making an annual $200-thousand contribution to UOG's school of Nursing, $50-thousand to speciality training and support of various charities.
READ the original 2001 QC HERE
The 2001 QC was amended in 2007 when PacifiCare changed its name to TakeCare. The amended QC reduced the reduced the required number of employees on Guam from 94, to just 13, while also reducing the tax exemption to income tax rebates and gross receipts tax abatement's applying "only ... to insurance related premiums" and not to the insurers investment income.
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