April 4 Two executives of the Pakistani arm of
computer giant Hewlett-Packard Co were arrested by local
officials in Karachi on Friday on suspicion of corporate tax
evasion, the Wall Street Journal reported.
The arrested executives were identified as Shahid Ali Khan,
HP Pakistan's country general manager for printing and personal
systems and country controller, Salim Rawjani. Hewlett-Packard
had no comment when contacted about the Journal report.
The arrests followed a raid at a large Pakistani computer
seller's offices in Karachi that revealed records allegedly
showing equipment as not being properly taxed, the Journal
Tanveer Malik, director of intelligence and investigation
for the Pakistan's Federal Board of Revenue told Journal the
raid was carried out after the agency received "overwhelming
evidence" of wrongdoing.
"We have no comment at this time, other than to say that HP
adheres to the highest ethical standards," said an HP
spokesperson when contacted by Reuters.
Pakistani tax officials told Journal the tax evasion
accusations could be expanded on further investigation following
the arrests, which was a preliminary step in Pakistani legal
proceedings, the Journal reported.
(Reporting By Shubhankar Chakravorty in Bangalore and Edwin
Chan in San Francisco)