GST search at Aviva: GST dept searches Aviva Life Insurance office for alleged tax evasion: Sources

India’s tax inspectors searched the workplace of British insurance coverage large Aviva’s life insurance coverage unit close to New Delhi final week and seized paperwork as a part of an investigation into alleged tax evasion, sources acquainted with the matter mentioned.

Officers of India’s Directorate Basic of GST (Items and Providers Tax) Intelligence additionally seized laptops throughout their go to on Nov. 7 and questioned some officers together with the India CEO Asit Rath and Chief Monetary Officer Sonali Athalye, mentioned two of the three sources, who declined to be named because of the sensitivity of the matter.

In a press release, Aviva Life Insurance coverage, India, informed Reuters “we will affirm that GST officers visited our head workplace website, we’re in full cooperation with them.” It shared no additional particulars and declined to touch upon its executives being questioned.

India’s finance ministry, which controls the GST division, didn’t instantly reply to an e-mail request for remark.

The Aviva searches are a part of a broader investigation involving many insurers who face allegations of not less than $610 million in unpaid dues, one of many sources, a senior Indian authorities official, mentioned.

Corporations allegedly accounted for gross sales commissions above the regulator-prescribed restrict as promoting and advertising prices, after which claimed tax credit illegally, the supply added. India’s largest insurer, state-run Life Insurance coverage Company, obtained a 2.9 billion-rupee ($35 million) demand discover from GST authorities in September as a part of the investigation, in response to a regulatory disclosure, and different gamers resembling HDFC Life and Bajaj Allianz have additionally confronted scrutiny. The insurers haven’t commented on the investigations. The quantity that Aviva allegedly evaded in taxes was not instantly clear.

UK’s Aviva has a 74% stake in Aviva Life Insurance coverage in India, with the remaining owned by India’s Dabur Make investments Corp. Aviva’s life insurance coverage enterprise has a lower than 0.5% market share on the premise of first-year premium collections in India.