The Federal Board of Revenue (FBR) has taken enforcement action against popular Western clothing brand Sowears, sealing its main offices and five retail outlets in Karachi for alleged tax evasion exceeding Rs. 100 million.
According to reports, Sowears failed to integrate its Point of Sale (PoS) system with the FBR’s centralized network since 2018, allowing the company to conceal taxable income. This non-compliance has resulted in substantial losses to the national exchequer.
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The retail locations sealed include Sowears outlets at Lucky One Mall, Dolmen Mall, Ocean Mall, Hyderi Market, and Saima Mall.
In addition, Sowears is accused of conducting undeclared international business activities in the UAE and USA, primarily through courier services. These operations were not disclosed in its domestic tax filings.
The FBR is also investigating the brand for its suspected use of illegal bank accounts and shell companies to further evade taxes and obscure its financial operations.
