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Aviva's India arm faces $7.5 mn fine for fake invoice scheme
Mint Chennai
|February 17, 2025
Indian authorities have ordered British insurer Aviva's local unit to pay $7.5 million in back taxes and penalties after an investigation found it created fake invoices to pay illegal commissions and claimed incorrect tax credits, an order shows.
The tax demand is significant for Aviva's India business, which recorded a profit after tax of only $10 million in the 2023-24 financial year.
Aviva also faces stiff competition from rivals in India's insurance market.
To grow its business, Aviva India paid about $26 million between 2017 and 2023 to vendors who purportedly provided marketing services, but they were only a front to give Aviva's agents excess commissions beyond regulatory limits, Indian tax authorities alleged in an August 3 notice Reuters reported last year.
This story is from the February 17, 2025 edition of Mint Chennai.
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