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. To grow its business, Aviva India paid about $26 million between 2017 and 2023 to vendors who purportedly provided marketing services. Aviva denied wrongdoing, saying the allegations were ”incorrect and unsustainable” and the vendors were not fake and had indeed provided services to the company, the February 5 order said. The tax investigation notice from last year included screenshots of emails and messages between Aviva executives and insurance distributors in which they discussed ways to skirt compensation regulations using fake invoices, tax officials said. In a statement to Reuters,Aviva India said it ”will contest the latest order through an appeal. The order will have no impact on its operations.” The Aviva business model that officials said was used to pay agents unlawful commissions from 2017 to 2023 was rolled out internally in 2013 and approved in writing by top India executives.
