Aviva's Tax Evasion in India Uncovered: Fake Invoices and Clandestine Payments

British insurer Aviva has been accused by Indian tax authorities of using fake invoices and illegal cash payments to circumvent commission regulations. Between 2017 and 2023, Aviva's India operations allegedly funneled $26 million to agents through deceptive vendors. This case is part of a broader $610 million investigation into Indian insurers for tax evasion.

An Indian tax agency has accused British insurer Aviva of violating local regulations by using fake invoices and secret cash payments to bypass commission caps for sales agents. According to a notice reviewed by Reuters, Aviva's India operations funneled approximately $26 million between 2017 and 2023 to entities posing as marketing and training service providers.

The Directorate General of GST Intelligence uncovered that these vendors were actually fronts to channel funds to Aviva's agents. 'Aviva and its officials have indulged in a deep-rooted conspiracy and used fake invoices without receiving services to pass money to insurance distributors,' stated the investigators.

Details of the notice, not previously public, are reported by Reuters. Such notices typically require companies to justify why they should not face penalties. The case is part of a widespread investigation into over a dozen Indian insurers, involving $610 million in unpaid taxes, interest, and penalties.

(With inputs from agencies.)