Aviva's Alleged Tax Evasion Scheme Unveiled in India

British insurer Aviva is accused of breaching Indian regulations by using fake invoices and clandestine payments to evade local taxes and exceed commission limits to agents. The scheme, discovered by Indian tax authorities, allegedly involved millions in unpaid taxes and penalties, and implicates senior company officials.

British insurer Aviva has been accused of violating Indian regulations by utilizing fake invoices and covert payments to sales agents, according to a notice seen by Reuters. The Indian tax agency's investigation alleges that Aviva's India business paid about $26 million through fraudulent means between 2017 and 2023 in an effort to evade $5.2 million in taxes.

The tax notice reveals that the company's senior management, including former CEO Trevor Bull, was aware of the illicit payments. Investigators assert that Aviva's actions were part of a broader scheme involving multiple insurers, aiming to dodge $610 million in unpaid taxes and penalties overall.

Aviva's Indian operations, run in joint venture with Dabur Invest Corp., did not respond to queries. The company faces approximately $11 million in penalties and is currently preparing to contest the allegations. Despite these legal troubles, Aviva sees India as a potential growth market in the highly competitive insurance sector.

(With inputs from agencies.)