Aviva’s India officials approved brokerage model queried by taxmen
Live Mint* Tax woes a major legal challenge for Aviva India * Tax officials accuse it of paying agents excess brokerage * Many top India executives signed off on brokerage system * Aviva says it is co-operating with Indian agency By Aditya Kalra and Nikunj Ohri NEW DELHI, Dec 13 - 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 document, titled "Inter Office Memo of Agent Mentor Model, 2013", using the company's name for the scheme, reveals it took effect from July 1, 2013, and carries the signatures of eight senior Indian executives. Aviva retained the "agent-mentor" model until at least 2023, the Indian tax investigation notice said, referring to the year in which commission norms were eased. Their job, on paper, was to train agents, but, on directions from Aviva, they submitted fake invoices for "recruitment fees", "development fees", "team support allowances", in order to enable payment of bigger commissions.
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