Aviva used fake invoices and clandestine cash payments to disguise $26 million of commissions paid to sales agents in India and thus to bypass tax and conduct rules, according to unpublished allegations made by the country’s tax authority.

The FTSE 100 insurer used the fake invoices to incorrectly claim tax credits and to evade $5.2 million in taxes, according to a notice from the Directorate General of Goods and Service Tax Intelligence, Reuters reported.

“Aviva and its officials have indulged in a deep-rooted conspiracy and used the modus of fake invoices (without receipt of services) to pass on certain money to … insurance distributors of Aviva,” the tax investigators wrote.

Aviva, which bills itself as “absolutely committed to being an ethical and responsible business”, said: “This is an industry wide issue which represents a small potential tax claim for our Indian joint venture which is actively engaging with the relevant authorities in India. There has been no adverse ruling or penalty against Aviva.”

Aviva India is a very small part of the overall Aviva empire, but it has been growing fast. Dame Amanda Blanc, 57, the group chief executive, spent £37 million in cash to increase its stake in the business from 49 per cent to 74 per cent in September 2022. Aviva India is a joint venture with Dabur Invest Corp, a local company.

The alleged abuses took place between 2017 and 2023, according to the notice. Such “show cause” notices typically require companies to explain why authorities should not issue penalties for their alleged acts. Aviva is expected to challenge the findings.

The case is part of broader investigation into more than a dozen Indian insurers for alleged evasion of $610 million in unpaid taxes, interest and penalties.

Aviva is one of Britain’s biggest insurers and investors, with 18.7 million customers in its biggest markets of the UK, the Republic of Ireland and Canada. It has assets under management of £170 billion. As well as offering home and car insurance, it sells life assurance and pension products.

The directorate general’s 205-page report included screenshots of emails and WhatsApp messages between Aviva executives and insurance distributors in which they discussed ways to skirt compensation regulations that cap commission payments. It also contained summaries of interviews conducted by tax officials with executives, including Sonali Athalye, Aviva India’s chief financial officer, who described how payments were made.

Trevor Bull, the Aviva India chief executive at the time, was copied in on a 2019 email discussing payments over regulatory limits, which indicated that “senior management of Aviva is also aware about this”, investigators wrote.