31st Aug 2024 10:28
(Alliance News) - India's tax authority has alleged that Aviva PLC used fake invoices to evade tax in the country, Reuters reported Friday.
The London-based insurance company's India business is alleged to have used fake invoices and secret cash payments to disguise USD26 million of commissions paid to sales agents in India between 2017 and 2023, bypassing tax and conduct rules.
The directorate general of Goods & Service Tax Intelligence said the vendors did not perform any work, serving instead as a front to channel funds to Aviva's agents. The directorate general is responsible for policing violations and indirect taxes.
Aviva is alleged to have evaded USD5.2 million in taxes via incorrectly claiming tax credits from the USD26 million in fake invoices.
https://www.reuters.com/business/finance/uks-aviva-conspired-dodge-india-compensation-tax-rules-agency-says-2024-08-30/
A UK-based Aviva spokesperson told Reuters that the company does not comment on "speculation or ongoing legal matters".
Aviva shares had closed 0.3% lower at 504.60 pence each on Friday in London.
By Tom Budszus, Alliance News slot editor
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