Aviva PLC (LSE:AV.) has been accused of using fake invoices and secretive cash payments to avoid Indian taxes and regulations capping commissions for sales agents.
The insurer’s Indian business paid around US$26 million (£19.7 million) from 2017 to 2023 to marketing and training service providers in a bid to grow operations, a tax notice seen by Reuters reportedly said.
These were actually fronts to channel money to Aviva’s own agents, however, the notice from India’s Directorate General of GST Intelligence said.
“Aviva and its officials have indulged in a deep-rooted conspiracy and used the modus of fake invoices to pass on certain money to [...] insurance distributors of Aviva,” it read.
Such fake invoices were used to claim tax credits and evade some US$5.2 million in taxes, the notice alleged.
These notices often require companies to quantify why authorities should not issue fines, with the report forming part of a wider probe into tax evasion among Indian insurance groups.
Screenshots of emails and WhatsApp messages were included in the notice, showing conversations between Aviva directors and insurance distributors on how to avoid regulations.