Aviva Faces Probe Over Alleged $26M Tax Evasion Scheme in India

British insurer Aviva is facing allegations from the Indian tax agency for breaching local regulations through the use of fake invoices and clandestine cash payments. The tax agency claims that Aviva's India business paid approximately $26 million between 2017 and 2023 to vendors who ostensibly provided marketing and training services. These vendors allegedly served as fronts to channel funds to Aviva’s agents, enabling the company to claim incorrect tax credits and evade $5.2 million in taxes.

Aviva now faces around $11 million in penalties, roughly equivalent to its 2023 profit from selling life insurance in India. The allegations against Aviva are part of a broader investigation into over a dozen Indian insurers for suspected tax evasion amounting to $610 million. Despite these charges, Aviva has declined to comment on ongoing legal matters and has not yet responded to the allegations publicly.