The Federal Board of Revenue (FBR) has sealed the offices and retail outlets of the Western clothing brand "Sowears" following revelations of tax evasion amounting to over Rs100 million.
A thorough investigation into the company's financial records revealed blatant tax evasion practices, according to the chief commissioner of the Regional Tax Office (RTO) II.
Subsequently, the FBR sealed five of Sowears' major retail outlets in Karachi, including branches in Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall.
FBR officials said that the company had been operating without integrating its Point of Sale (PoS) system with the FBR's centralised system since 2018 - something that contributed to the concealment of taxable income and deprived the national exchequer of over Rs100 million.
The investigation also revealed that Sowears was allegedly conducting undeclared business activities in the UAE and the USA.
These transactions were reportedly facilitated through courier services and were not disclosed in the company's income filings in Pakistan. FBR officials suspect that these international dealings, along with the use of illegal bank accounts and shell companies, may involve elements of money laundering.
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