SHC halts FBR to take action against Nomi Ansari in tax fraud case

KARACHI: The Sindh High Court (SHC) halted the Federal Board of Revenue (FBR) from issuing a notice to renowned Fashion designer Nomi Ansari in a tax fraud case of Rs. 1 billion on Friday, according to media reports.

A two-member bench, led by Acting Chief Justice Muhammad Junaid Ghaffar issued notice to the relevant authorities to appear in person on next hearing.

The court also directed the FBR official, who filed the FIR, to be present before the court at the next hearing.

The petitioners claimed that the FIR breached a previous interim ruling given by the SHC in a related matter brought by the designer. They argued that the FIR lacked legal power and jurisdiction.

The appeal also asserted that FBR conducted an illegal raid and shut the designer’s premises. That sealing was already challenged at the SHC, which temporarily halted the FBR’s action last month. Furthermore, the lawyer contended that the court had stayed earlier notices and summons issued to the petitioners on the identical topic in different instances.

Earlier, the Corporate Tax Office (CTO) Karachi filed an FIR report against Mr. Nomi, claiming that he committed sales tax fraud involving a phenomenal 1.25 billion rupees.

Reportedly, FBR began taking action after information about tax evasion, and began an investigation, showing Nomi was fraudulent, with a good deal of evidence regarding possible fraud. Accordingly, the FBR received search warrants from a magistrate and searched and examined Nomi Ansari’s factory (and many outlets dated) in Karachi, and retrieved documents (records) and other things relevant to the investigation.