KARACHI – The Federal Board of Revenue (FBR) has taken major action and uncovered alleged tax evasion worth over Rs100 million by a well-known fashion brand, Sowears, and sealed four of its outlets in Karachi.
The action was taken by the Regional Tax Office-II after an investigation into the case. The FBR claimed that the fashion brand Sowears was found involved in tax evasion, concealing income, and secret foreign business activities.
Since 2018, the brand deliberately avoided linking its Point of Sale (POS) system with the FBR, causing a loss of over Rs100 million to the national treasury.
It said that the brand’s outlets at Lucky One, Dolmen Mall, Ocean Mall, and Saima Mall were sealed, and the team also raided the factory located in the SITE industrial area.
Regarding the operations, it was said that during the raid, the team seized business records and digital evidence.
The said brand was also operating in Dubai and the United States, but the income from these foreign businesses was not declared in Pakistan. Due to these undeclared foreign transactions, the risk of money laundering is also being indicated.
The FBR further stated that the fashion brand transferred income to illegal bank accounts and secret companies, upon which investigations are ongoing under the Income Tax Ordinance and other relevant laws.
