FBR Goes After Fashion Designers After Finding Massive Tax Evasion

The Federal Board of Revenue (FBR) has found massive tax evasion by fashion designers.

According to the available documents, this was revealed while surveying for new taxpayers. The FBR has found that marriage dress designers charge an exorbitant amount for bridal dressmaking.

Sardar Ali Solangi, deputy commissioner (Inland Revenue) of Regional Tax Office-II, stated in the letter that Some of the designers even charge millions for a single dress but when their income tax returns were analyzed it was found that quite a large number of these dress designers were paying very meager amount of tax i.e. their declared income does not commensurate with their receipts.

The letter further stated that some of them are even not on the tax roll.

The office has identified 24 dress designers involved in misreporting their sales. Following are the names of the designers that the department is going to issue notices to:

1. Shehrnaz

2. Nada Tai

3. Aisha Ahmed

4. Wardha Saleem

5. Sanam Chaudhri

6. Sania Maskatiya

7. Cartes by Pasho

8. Silhouettes by Ash and Uzma

9. Nida Azwer

10. Waqar J. Khan

11. Kavalier Laser Cut Innovations

12. Rozina Munib

13. Ayesha Sarfaraz

14. Farida Qureshi

15. Saleha

16. Mahin

17. Natasha Kamal

18. Basic

19. Sarah Arshad Gilani

20. Amna Chaudhry

21. Chikankari

22. House of Farah V

23. Sable Vogue

24. Zuri by Zainab Fawad

Their returns are being analyzed and the desk audit is being conducted. The letter further stated that the information obtained about their income will be cross-matched with declared income, wealth statement filed and withholding statements filed by the withholding agents.

It is estimated that a huge loss of revenue will be detected, maintained Sardar Ali Sorangi. However, notices are being issued and further progress will be submitted by 27th of February, 2020, noted the Deputy Commissioner IR.

Tax managers are speeding up their efforts in order to meet the Rs. 5.23 trillion revenue target of the current fiscal year of 2019/20.

Source: Pro Pakistani