Aviva India Fined $7.5M for Tax Evasion
Aviva's Indian subsidiary ordered to pay $7.5 million in back taxes and penalties.
Aviva's India Arm Fined $7.5 Million for Tax Evasion
In a significant development, Aviva's Indian subsidiary has been ordered to pay $7.5 million in back taxes and penalties. This comes after an investigation revealed that the company had created fake invoices to pay illegal commissions and claimed incorrect tax credits.
According to the order, Aviva's Indian arm had indulged in "deliberate and willful" tax evasion, resulting in a loss of revenue to the government. The company has been asked to pay the fine within a stipulated time frame.
The investigation, which was conducted by Indian authorities, found that Aviva's Indian subsidiary had created fake invoices to pay commissions to its agents and distributors. These commissions were not legitimate business expenses and were not allowable as deductions under the tax laws.
Furthermore, the company had also claimed incorrect tax credits, resulting in a loss of revenue to the government. The authorities have taken a serious view of the matter and have imposed a significant fine on the company.
This development is likely to have significant implications for Aviva's Indian operations. The company will have to pay the fine and also take steps to rectify its tax compliance processes.
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