ISLAMABAD: Startups that participated in the first season of Shark Tank Pakistan are reportedly under investigation by the Federal Board of Revenue (FBR) over potential tax discrepancies. The news came to light through a LinkedIn post by Ahmed Rauf Essa, CEO of Telemart, who revealed that multiple startups from the show have received tax notices from the FBR, and some are facing legal action for allegedly underreporting their financials.
As per a report by TechJuice, Essa pointed out that several of these startups have disclosed less than 20% of their financial figures to the tax authorities, a stark contrast to businesses like his own, which report 100% of their financial data to avoid complications. He expressed that he had foreseen such scrutiny, noting that the FBR had been closely monitoring businesses featured on the show. Some startups have already reached out to Essa for advice regarding their ongoing legal cases.
This development underscores the challenges startups in Pakistan face, particularly those that gain public attention through platforms like Shark Tank Pakistan. It highlights the importance of transparent financial reporting and compliance with tax regulations.
Industry experts recommend that startups prioritize professional financial management and adherence to tax laws to avoid such issues. Legal advisors stress the importance of accurate reporting, particularly for businesses pitching on national platforms where they attract significant scrutiny.
Reactions within the startup community have been mixed. While some entrepreneurs support the push for greater transparency, others are concerned about the potential negative impact on innovation and growth. Many argue that the country’s tax policies need to be more supportive of startups to foster a conducive environment for entrepreneurship.
The FBR has not yet issued a public statement on the matter, while the startups involved continue to deal with the complexities of compliance, transparency, and legal scrutiny.
