Startups from Shark Tank Pakistan Face Scrutiny by FBR Over Tax Discrepancies

The Federal Board of Revenue (FBR) is reportedly scrutinizing startups that appeared on the first season of Shark Tank Pakistan. The news was shared by Ahmed Rauf Essa, CEO of Telemart, in a LinkedIn post. Essa revealed that several startups have received tax notices from the FBR and are facing legal challenges over alleged underreporting of financial figures.

According to Essa, many of these startups disclosed less than 20% of their financials, raising red flags with the tax authority. “Unlike businesses like ours, which declare 100% of their numbers to the FBR to avoid complications, many startups reportedly disclose less than 20%,” Essa wrote.

The entrepreneur claims he had anticipated this development, citing FBR’s close monitoring of the show and the businesses featured on it. He also stated that some startups have reached out to him regarding their ongoing cases.

This revelation highlights the financial and operational hurdles faced by startups in Pakistan, especially those under the public eye after gaining exposure through national platforms like Shark Tank Pakistan.

Techjuice reached out to experts for an opinion on this, industry leaders suggest that startups should prioritize professional financial management and tax compliance to avoid such complications. Legal advisors also emphasize the importance of accurate financial reporting, especially when pitching on high-profile platforms.

The startup community has expressed mixed reactions to the news. While some entrepreneurs appreciate the push for transparency, others worry about the potential chilling effect on innovation and growth. Many argue that tax policies need to be more startup-friendly to encourage entrepreneurship in Pakistan.

The FBR has not yet commented publicly on these developments. Meanwhile, the startups in question continue to navigate the challenges of compliance, transparency, and legal scrutiny.