In a crackdown on tax evaders, the Corporate Tax Office Karachi has registered an FIR against renowned fashion designer Nomi Ansari, for allegedly committing a massive sales tax fraud amounting to Rs. 1.2 billion over a span of nearly seven years.
According to credible sources within the Federal Board of Revenue (FBR), the accused, along with associates Muhammad Noman, Hussain Kazmi, Syed Ali Mesum Naqvi, Majid Zahoor, and Imran Musel, orchestrated a sophisticated scheme to under-declare taxable sales from the tax period July 2018 to January 2025. The accused allegedly maintained two sets of financial records — one to reflect actual sales and another for the purpose of evading tax obligations.
An in-depth analysis of the sales tax returns filed by M/s Nomi Ansari revealed glaring discrepancies, according to the FIR filed. The accused had declared taxable sales without corresponding purchase records, a move inconsistent with the declared nature of the business. This abnormal financial profile triggered suspicion, prompting investigators to seek third-party verification from concerned banks. The banking information unearthed further anomalies — including foreign remittances and substantial cash deposits not supported by official documentation.
In light of the findings, the tax authorities invoked Section 40 of the Sales Tax Act, 1990, and obtained search warrants to raid three business premises of the accused. On February 20, 2025, teams conducted operations at two declared commercial outlets and uncovered an undeclared manufacturing unit located in Mehran Town, Karachi.
The FIR reveals that during the raids, authorities seized extensive records, sale vouchers, hard drives, and slips of money exchange transactions. These documents were later converted into databases showing three streams of revenue: retail outlet sales, sales processed through M/s Cresset Strategic Partners (SMC-Private) Limited, and international sales received through money exchange services. Investigators found that large sums were received under the names of staff members, raising further red flags.
The compiled records indicated a massive suppression of sales totaling Rs. 1.38 billion, leading to an evasion of sales tax worth approximately Rs. 239.7 million. Consequently, a show-cause notice was issued to M/s Nomi Ansari on March 3, 2025. After giving the accused an opportunity to respond, an Assessment Order No. 110 of 2025 was issued on April 17, confirming the tax liability.
FIR proceedings have now been formally initiated under Section 37A of the Sales Tax Act, 1990, and further investigation is ongoing. Despite raids, Ansari has yet to be apprehended. Authorities believe he may currently be abroad, and efforts are underway to secure his arrest upon return.
TFT has learned from its sources that protective bail has been secured by the accused.
Tax officials emphasise that the operation is part of a wider campaign against tax evasion in the fashion and luxury goods sector. The case against Nomi Ansari marks one of the largest tax fraud investigations in recent history and serves as a stern warning to others operating outside the bounds of fiscal law.