• Fraudsters create fake invoices and documents to manipulate financial records.
• Used to evade regulatory limits on commissions or taxes.
• Can lead to significant financial losses for both regulators and customers.
• Example: Aviva India’s Alleged Fake Invoices to Evade Taxes (2017–2023).

2. Aviva India’s Alleged Use of Fake Invoices to Evade Taxes (2017–2023)

Steps of the Fraud:

1. Creation of Fake Invoices:
   • Aviva India allegedly generated fraudulent invoices to disguise commissions paid to sales agents.
2. Evasion of Regulatory Caps:
   • The company purportedly used these invoices to circumvent regulatory limits on agent commissions.
3. Tax Evasion:
   • By misrepresenting expenses, Aviva India is accused of evading approximately $5.2 million in taxes.
4. Regulatory Investigation:
   • Indian tax authorities investigated the scheme, uncovering internal communications suggesting involvement of senior executives.