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Exclusive: Aviva's India officials approved brokerage model queried by taxmen


Published on 2024-12-13 04:20:48 - Reuters
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  • An Aviva business model that Indian tax officials say 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, a confidential company document shows.

The article from Reuters discusses how Aviva Plc's Indian officials approved a brokerage model that has now come under scrutiny by tax authorities. The model, which was implemented in 2018, involved paying commissions to brokers for selling insurance policies, a practice that has raised concerns about potential tax evasion and misclassification of income. The Indian tax department has issued notices to Aviva Life Insurance Company India Ltd., questioning the tax treatment of these commissions. Aviva has stated that it is cooperating with the authorities and believes its practices are compliant with local laws. The issue highlights broader regulatory challenges in the insurance sector regarding the classification and taxation of intermediary payments.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/avivas-india-officials-approved-brokerage-model-queried-by-taxmen-2024-12-13/ ]