Islamabad: Startups that participated in the first season of Shark Tank Pakistan are reportedly under investigation by the Federal Board of Revenue (FBR) over potential tax discrepancies. This news came to light through a LinkedIn post written by Ahmed Raouf Issa, CEO of Telemart, who revealed that several startups from the show have received tax notices from the FBR, and some are facing legal action for allegedly not reporting their financial statements properly.
According to a report by TechJuice, Issa noted that many of these startups disclose less than 20% of their financial numbers to the tax authorities, a stark contrast to companies like his, which report 100% of their financials to avoid complications. He expressed that he expected such scrutiny, noting that the FBR was closely monitoring the companies featured in the bid. Some startups have already reached out to Issa for advice on their ongoing legal issues.
This development highlights the challenges faced by startups in Pakistan, especially those that gain public attention through platforms like Shark Tank Pakistan. It highlights the importance of transparent financial reporting and compliance with tax regulations.
Industry experts recommend startups to prioritize professional financial management and adherence to tax laws to avoid such issues. Legal advisors stress the importance of accurate reporting, especially for companies presenting on national platforms where they attract a great deal of scrutiny.
Reaction within the startup community has been mixed. While some entrepreneurs support efforts to achieve greater transparency, others are concerned about the potential negative impact on creativity and growth. Many believe that the country’s tax policies need to be more supportive of startups to foster an environment conducive to entrepreneurship.
The FBR has yet to issue a public statement on the matter, while the startups in question continue to grapple with the complexities of compliance, transparency and legal scrutiny.