Tax authorities capture huge cash transactions of dress designers; start assessment

Tax authorities capture huge cash transactions of dress designers; start assessment

KARACHI: Tax authorities have captured millions of rupees cash transactions by many dress designers. The authorities are now making assessment on the basis of such transactions for imposing income tax for past five years, sources said on Wednesday.

The sources said that the tax authorities had captured the cash transactions while disguising themselves as customers during their visits to those places where mostly wedding dresses were being displayed for sale.

Regional Tax Office (RTO) II, Karachi, a revenue collecting arm of Federal Board of Revenue (FBR), identified such dress designers, who were evading income tax. The office issued notices to explain the reasons of very low amount of tax payment or no payment of tax at all.

The tax office during survey found that there was a sector of marriage dress designers, who charge exorbitant amount for the bridal dress making.

Some of the designer 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 are paying very meager amount of tax i.e. their declared income does not commensurate with their receipts.

Some of them are even not on tax roll.

The RTO-II Karachi identified the following dress designers:

01. Shehrnaz

02. Nada Tai

03. Aisha Ahmed

04. Wardha Saleem

05. Sanam Chaudhri

06. Sania Maskatiya

07. Cartes by Pasho

08. Silhouettes by Ash & Uzma

09. 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

The sources said that the returns of above were being analyzed and desk audit was being conducted.
The information obtained about their income would be cross matched with declared income and wealth statement filed and withholding statement filed by withholding agents.

The tax office estimated huge loss of revenue would be detected.

Notices under section 176 of Income Tax Ordinance, 2001 have been issued and further progress would be finalized by February 27, 2020.