The Federal Board of Revenue (FBR) has initiated a crackdown on startups that appeared on the popular television show Shark Tank Pakistan, pitching their business equity in crores. FBR officials have reportedly sent notices to these businesses, urging them to provide detailed tax compliance records and evidence of their financial dealings.
The notice follows the high-profile pitches where entrepreneurs sought investment offers for their growing businesses, some valuing their companies at tens of crores. The FBR has expressed concerns that some startups might not be fully declaring their income or adhering to tax obligations, potentially resulting in tax evasion.
The show, which has been a significant platform for young entrepreneurs in Pakistan, has seen several startups gain massive valuations. However, the FBR is now focusing on ensuring that all these businesses follow proper financial practices, including transparent reporting of revenues, expenses, and taxes owed.
This move is part of the government’s ongoing effort to streamline tax collection in the rapidly growing startup ecosystem and ensure that all businesses comply with national tax regulations. The entrepreneurs have been asked to respond to the notices by submitting the required documentation within the next few weeks.
The FBR’s actions come as part of its broader efforts to combat tax evasion in Pakistan’s burgeoning tech and startup sectors. Experts believe this will lead to more stringent financial oversight in the future.
