Two HP Executives Arrested for Tax Evasion

pakistan-arrests-two-hp-executives-on-suspicion-of-corporate-tax-evasion

Two senior executives of the US based Hewlett-Packard Co. (HP) have been arrested by The Federal Board of Revenue (FBR) on suspicion of tax evasion.

According to a local English newspaper the FBR has identified the individuals as Shahid Ali Khan, Country Manager, Hewlett-Packard, and Saleem Raza Rajwani, Finance Director, HP.

The two individuals were arrested through a joint operation conducted by the Directorate of Intelligence and Investigation of Inland Revenue at Karachi and Islamabad.

When an international news agency contacted an HP spokesperson he refrained from commenting on the matter and said, “We have no comment at this time, other than to say that HP adheres to the highest ethical standards.

The directorate of intelligence IR had directed HP and one other big IT company to share information about their supplies of computers, accessories, and other such products made to Advance Business Systems Company (ABS Company). It has been reported that HP was reluctant to share this information, while the other big company has given the necessary information to the directorate.

It merits mentioning here that a tax evasion case had already been registered against ABS Company prior to the arrests of the HP officials.

On Friday the Civil Judicial Magistrate Waqar Ahmed Soomro granted the transit-remand of the two arrested HP officials.

The directorate has stated that they are not alleging the international company as a whole and is investigating the local Pakistani management of HP for tax evasion in Pakistan.


  • Muhammad Aamir

    It is a good step taken by Intelligence Agency, but if they arrest all those people who are involve in corruption. In Pakistan, there are only 0.04% people who are paying tax (Reference : Hasb-e-Haal).Especially our politics leader etc who are looting our country.

    • Mark

      This is good step. But Federal Board of Revenue (GOP) they are involved in this case. The case is custom valuation. Pakistan custom accept the under price of the computers. The importers pay taxes accordingly. The custom official are earning money under the table. They should accept the equal import value to all importers.

      • Muhammad Aamir

        How you can say that all of the importers are paying taxes accordingly? I don’t think so! In Pakistan, only a few people are paying taxes (Only 0.04%- Reference : Hasb-e-Haal – 30th November 2012) I think, there is only one reason why people are not paying taxes, the people who want to pay tax know that all their money will go on the wrong hand They want to pay taxes, but they don’t trust our government.

  • John Baptist

    “We have no comment at this time, other than to say that HP adheres to the highest ethical standards.”

    Yeah right. This is only tip of the iceberg. How many procurement and government people has HP sent on foreign trips as part of marketing or sales effort.

    Good to know GoP is taking action. But I think HP international not involved here. Only local reps trying to meet sales targets.

  • Yasir Mahmood

    Leave Pakstani Companies Making Trillions of BlackMoney
    Arrest Foreign Companies Reps…

    • hinopak

      Why don’t you move abroad. Violating Abby country’s tax laws is illegal and people should be punished. Besides this don’t penalise me because my neighbour is a tax cheat too and hasnt been caught is not a defence.

      And yes please let Pakistani companies make trillions for once. Atleast one fraction will be reinvested with in Pakistan to create more jobs.

  • Asher

    Dear,
    We have the elected parliment, how much they give tax, what about fbr rolls for political lords?
    Secondly, HP is a one tiny particle in corrupted environment. I suggest charity begins at home, start from FBR employees. How many have telecom towers installed on their lands, how much they pay taxes?
    Huawei caught on imports tax corruption, but no update; seems dust on its file now.
    Hamdard Waqf PK/Riphah University having university now, how much they save on name of Trust.
    Concept of Trust/waqf pakistan simply to save tax/ money.
    Rgds,

  • Waqar

    Too Late