Aviva's India unit ordered $7.5m fine for fake invoice scheme

Penalty to hit British insurer's local JV hard, as last year's profit was mere $10m

Indian authorities had alleged that Aviva's India unit used the clandestine system of fake invoices and cash payments, incorrectly claimed tax credits, and evaded $5.2 million in taxes. © Reuters

February 16, 2025 18:14 JST

NEW DELHI (Reuters) -- 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.