What is the total tax evasion amount Aviva India is accused of?

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Aviva India Accused of Evading US$5.2 Million in Taxes

Aviva India is accused by Indian tax authorities of evading approximately US$5.2 million in taxes. This alleged evasion was facilitated through the use of fake invoices totalling around US$26 million, which were purportedly for marketing and training services but were in fact a mechanism to channel funds to the company's sales agents beyond regulatory commission caps.
Use of Fake Invoices for Clandestine Payments

The Directorate General of GST Intelligence, responsible for policing indirect tax violations, found that Aviva India used a system of fake invoices between 2017 and 2023. The company allegedly paid approximately US$26 million to entities that fronted for Aviva's agents, with these vendors not having performed any actual work. Investigators stated that Aviva and its officials engaged in a conspiracy to pass on money to insurance distributors through these fake invoices, without the receipt of services.
Circumvention of Commission Regulations

These clandestine payments were designed to circumvent local regulations that capped commissions paid to sales agents. Aviva's India business allegedly used these fake invoices to incorrectly claim tax credits. Emails and WhatsApp messages between Aviva executives and insurance distributors, recovered by investigators, discussed methods to bypass compensation regulations, indicating that senior management was aware of these practices.
Broader Tax Evasion Investigation

The case involving Aviva India is part of a larger investigation by Indian tax authorities into over a dozen other Indian insurers. These investigations are examining alleged evasion of US$610 million in unpaid taxes, interest, and penalties across the sector. The notice sent to Aviva indicates the company could face penalties of roughly US$11 million, a sum comparable to its 2023 profit from life insurance sales in India.

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What is the total tax evasion amount Aviva India is accused of?

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