FBR Goes After Fashion Designers After Finding Massive Tax Evasion


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

According to the available documents, this was revealed while surveying for brand spanking 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 within the letter that “Some of the designers even charge millions for one dress but when their tax returns were analyzed it had been found that quite sizable amount of those dress designers were paying very meager amount of tax i.e. their declared income doesn’t commensurate with their receipts.”

The letter further stated that a number 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 goes to issue notices to:

Nada Tai
Aisha Ahmed
Wardha Saleem
Sanam Chaudhri
Sania Maskatiya
Cartes by Pasho
Silhouettes by Ash & Uzma
Nida Azwer
Waqar J. Khan
Kavalier Laser Cut Innovations
Rozina Munib
Ayesha Sarfaraz
Farida Qureshi
Natasha Kamal
Sarah Arshad Gilani
Amna Chaudhry
House of Farah V
Sable Vogue
Zuri by Zainab Fawad
Their returns are being analyzed and therefore the desk audit is being conducted. The letter further stated that the knowledge obtained about their income are going to be cross-matched with declared income, wealth statement filed and withholding statements filed by the withholding agents.

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

Tax managers are speeding up their efforts so as to satisfy the Rs. 5.23 trillion revenue target of the present financial year of 2019/20.

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