The Federal Board of Revenue (FBR) has found huge tax evasion by fashion designers.
According to the documents, this was revealed while surveying for new taxpayers. The revenue board 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:
Cartes by Pasho
Silhouettes by Ash & Uzma
Waqar J. Khan
Kavalier Laser Cut Innovations
Sarah Arshad Gilani
House of Farah V
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 the 27th of February, 2020, noted the Deputy Commissioner IR.