The Federal Board of Revenue (FBR) has taken action against the Western clothing brand Sowears in Karachi, sealing its head office and five retail outlets across the city. The move comes amidst allegations of significant tax evasion, reportedly exceeding Rs. 100 million.
Tax authorities allege that Sowears failed to integrate its Point of Sale (PoS) system with the FBR’s central network since 2018. This alleged non-compliance is suspected to have allowed the company to conceal taxable income, resulting in substantial revenue losses for the national exchequer.
The sealed retail locations include prominent Sowears branches situated in Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall.
Further allegations suggest that Sowears was involved in undeclared international business activities in the United Arab Emirates (UAE) and the United States of America (USA). These international operations were reportedly conducted using courier services and were not disclosed in the company’s domestic income tax returns.
Investigators also suspect the potential use of illegal bank accounts and shell companies as part of the alleged scheme to evade taxes.
The sealing of the premises indicates the initiation of formal proceedings by the FBR to investigate these serious allegations of tax evasion and non-compliance with tax regulations.
