Consultant picture. British insurer Aviva stated on Saturday (August 31, 2024) its India unit is “actively partaking” with native authorities in reference to alleged tax evasion practices.
| Picture Credit score: Reuters
British insurer Aviva stated on Saturday (August 31, 2024) its India unit is “actively partaking” with native authorities in reference to alleged tax evasion practices.
Indian tax company has discovered that Aviva India breached native laws capping commissions to gross sales brokers with a system of pretend invoices and clandestine money funds between 2017 and 2023.
Aviva’s India enterprise paid about $26 million to entities who purportedly supplied advertising and marketing and coaching providers, however they didn’t carry out any work and have been truly a entrance for channeling funds to Aviva’s brokers, the tax company stated on August 3.
The faux invoices have been alleged to have been utilized by Aviva to assert tax credit and evade $5.2 million in taxes in India. The corporate faces as a lot as $11 million in penalties, which is roughly its 2023 revenue from promoting life insurance coverage within the nation.
In an announcement on Saturday (August 31, 2024), a UK-based spokesperson for Aviva referred to the matter as “an trade large concern”, including its Indian three way partnership was “actively partaking with the related authorities”.
Aviva holds 74% in its India three way partnership with Dabur Make investments Corp, a distinguished native agency.
The case is a part of a broader investigation into over a dozen Indian insurers for alleged evasion of $610 million in unpaid taxes, curiosity and penalties.
Aviva stated it faces “a small potential tax declare” and “there was no adversarial ruling or penalty in opposition to Aviva”.
