“Sowears” faces closure and money laundering allegations after failing to integrate sales with FBR.
Key Takeaways:
i) The Federal Board of Revenue (FBR) sealed “Sowears” outlets due to tax evasion exceeding Rs 100 million.
ii) “Sowears” did not integrate its sales system with the FBR, enabling them to conceal income.
iii) The company is suspected of undeclared international business activities and potential money laundering through illegal bank accounts and shell companies.
Karachi, Pakistan – The Federal Board of Revenue (FBR) has sealed multiple retail locations of the clothing brand “Sowears” after uncovering tax evasion exceeding Rs 100 million. The Regional Tax Office (RTO) II revealed that “Sowears” had not connected its Point of Sale (PoS) system to the FBR’s central network since 2018. This non-compliance enabled the company to avoid paying taxes on a substantial amount of income.
Further investigation indicated that “Sowears” was also involved in unreported business activities in the United Arab Emirates (UAE) and the United States (USA), using courier services. FBR officials suspect the company may have used illegal bank accounts and shell companies to facilitate these hidden international transactions, potentially involving money laundering.
As a result of the investigation, FBR officials have sealed five major “Sowears” retail outlets in Karachi, located at Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall.
