FBR Seals Retail Outlets of Clothing Brand in Karachi for Rs. 100 Million Tax Fraud

The Federal Board of Revenue (FBR) has sealed the offices and five retail outlets of Western clothing brand Sowears in Karachi over alleged tax evasion exceeding Rs. 100 million. The company allegedly failed to integrate its Point of Sale (PoS) system with the FBR’s centralised network since 2018, enabling concealment of taxable income. This non-compliance led to significant revenue losses for the national exchequer, reported a news daily. Retail locations sealed include Sowears branches in Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall. Sowears was allegedly engaged in undeclared international business activities in the UAE and the USA. These operations were conducted through courier services and not disclosed in domestic income tax returns. Tax authorities also suspect the use of illegal bank accounts and shell companies.