FBR seals clothing brand’s outlets over Rs100 million tax evasion, suspects money laundering

The Federal Board of Revenue (FBR) has sealed the offices and retail outlets of the Western clothing brand "Sowears" following a probe into tax evasion amounting to over Rs100 million, according to a news report. 

The investigation into the company’s financial records revealed significant discrepancies and non-compliance with tax regulations, according to the chief commissioner of the Regional Tax Office (RTO) II.

As a result, FBR officials sealed five of Sowears' major retail outlets in Karachi, including locations at Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall. 

The company had been operating without integrating its Point of Sale (PoS) system with the FBR’s centralised network since 2018, a failure that allowed Sowears to conceal taxable income and evade paying taxes on over Rs100 million.

Further investigations also uncovered that Sowears had been involved in undeclared business activities in the UAE and the USA. These operations were conducted via courier services and were not reported in the company's income filings in Pakistan. 

FBR officials suspect that Sowears may have used illegal bank accounts and shell companies, potentially involving money laundering to facilitate these hidden international transactions.