Aviva Accused of Dodging Indian Tax and Compensation Rules with Fake Invoices and Cash Payments

An Indian tax agency has accused British insurance giant Aviva of orchestrating a scheme to circumvent local regulations on commission caps for sales agents, resulting in millions in unpaid taxes. According to a notice, Aviva’s India business allegedly funneled approximately $26 million between 2017 and 2023 through fake invoices for marketing services that were never rendered. This operation reportedly enabled Aviva to pass funds to its agents as excess commissions, breaching regulations that cap such payments. The investigation into Aviva is part of a larger crackdown on over a dozen insurers in India for tax evasion totaling $610 million. Investigators presented evidence, including emails and WhatsApp messages, implicating senior Aviva officials, and the company now faces up to $11 million in penalties. Aviva has yet to officially respond to the allegations but is expected to contest them. This case highlights ongoing issues within the insurance sector in India and the challenges of regulatory enforcement.