KARACHI: The Federal Board of Revenue (FBR) has sealed the offices and outlets of a well-known clothing brand, Sowears, in Karachi due to tax evasion exceeding Rs100 million and suspicions of undeclared overseas operations.
According to the chief commissioner of the Regional Tax Office (rto) II, following a detailed investigation into the company’s financial dealings, the FBR sealed the clothing brand over tax evasion, exposing blatant practices that violated tax regulations.
As a result, five major retail outlets of Sowears in Karachi, located in Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall, have been sealed by FBR authorities.
Officials revealed that the Sowears company had been operating without integrating its Point of Sale (PoS) system with the FBR’s centralised platform since 2018. This non-compliance enabled the concealment of taxable income, causing significant losses to the national treasury exceeding Rs100 million.
Further investigations unveiled the brand’s alleged involvement in undeclared business operations in the UAE and the USA.
These international transactions, carried out through courier services, were omitted from Pakistan’s income records. FBR officials also suspect that illegal bank accounts and shell companies were used, hinting at potential money laundering activities.
This is not the first time the FBR has taken such action against commercial outlets over tax evasion allegations.
The apex taxation body previously sealed three major watch retailers in Karachi over similar charges of tax evasion and suspected money laundering, highlighting its ongoing efforts to crack down on financial irregularities across the country.
