FBR files PKR1.2 billion tax fraud case against Nomi Ansari

The Federal Board of Revenue (FBR) filed a First Information Report (FIR) against renowned Pakistani fashion designer, alleging that he is involved in a fraud case of over Rs1.2 billion.

The FIR was filed on April 18, mentioning that Ansari is being charged under Section 2(37) of the Sales Tax Act, 1990, which pertains to tax fraud.

FBR claimed that Ansari violated several sections of the Sales Tax Act, including:

Section 3 (Scope of tax)
Section 6 (Payment timelines)
Section 7 (Tax liability determination)
Sections 8 and 8A (Tax credits and liabilities in supply chain)
Section 11E (Recovery of unpaid or short-levied tax)
Sections 22, 23, 26, and 73 (Maintenance of records, invoices, returns, and inadmissible transactions)
In addition, the FIR lists potential punishments under Section 33, including penalties for failing to issue invoices, depositing due taxes, submitting false records, and committing tax fraud.

Ansari has not publicly responded to the matter.

Search operations
The FBR’s case is built on discrepancies found in Ansari’s Sales Tax Returns, which reportedly revealed zero purchases despite significant declared sales — a red flag for a fashion label heavily reliant on raw materials and manufacturing inputs.

Upon receiving a search warrant on February 20, the FBR conducted raids on three of Ansari’s business locations in Karachi. The raids uncovered not only his declared premises but also an undeclared manufacturing unit in Mehran Town.

Evidence
According to the FIR, the search led to the seizure of documents that indicated suppressed sales, pointing to much larger business volumes than reported. Investigators also found foreign remittance records and cash deposits allegedly made through employees without proper documentation.

Additional individuals named in the FIR include

Hussain Kazmi
Syed Ali Massum Naqvi
Imran Musel
These individuals are also under investigation for their potential involvement in the case.

Ongoing investigation
The FBR has invoked Section 37A of the Sales Tax Act, allowing prosecution based on available evidence. The case remains under investigation as the bureau examines seized records and continues gathering testimony.