The Federal Investigation Agency (FIA) has started a money-laundering and tax evasion inquiry into renowned singer Rahat Fateh Ali Khan after it was revealed that the musician made nearly Rs8 billion in 12 years for local and international concerts.
The decision of the tax authorities comes as the global star grapples with the scandal of violent behaviour following the emergence of a sensational video, which shows him repeatedly beating one of his band members allegedly over a missing bottle of liquor. The beating video has shocked tens of millions of people around the world.
Rahat has contributed dozens of songs for Bollywood.
According to reports, the FIA has asked the Federal Board of Revenue (FBR) to hand over full record of Rahat’s assets and income tax. FIA sources told the media that the premier investigation agency has asked the FBR to hand over full record of the singer’s tax payments for the last 12 years.
This isn’t for the first time that the singer has run into troubles with the FIA and the FBR, but the nature of the allegations is quite serious.
The FIA acted after Rahat Fateh Ali Khan’s former global promoter Salman Ahmed revealed that the singer had made around Rs8 billion in 12 years with him. Salman Ahmed said he has full evidence to show that Rahat earned, through his management company, around Rs8 billion (over $22 million from international tours and over Rs1.3 billion from concerts in Pakistan).
Salman Ahmed said he was willing to hand over full data to the FIA and the FBR, including audit and money trail.
FBR sources have said that the singer’s tax payment record doesn’t match even remotely with the singer’s income.
Salman Ahmed’s company managed Rahat for around 12 years, and he spoke out about the singer’s earnings only after Rahat made allegations of wrongdoing against Salman Ahmed’s management company.
At a Lahore press conference, Rahat Fateh Ali announced that he will be managed in the future by his wife and other family members, announcing to part ways with his previous management company spearheaded by globally acclaimed music and concert producer Salman Ahmed.
Khan announced that his Pakistan company RFAK will merge into NRK, which is being managed by his wife Nida Rahat, her brother Baqa Burki, who runs a truck business in US, and in Pakistan by his cousin, Maroof Ali Khan, who previously was alleged in 2014 by Rahat to have stolen over $1.2 million from him, Asher Anwar and Raja Umair Hussain.
Rahat Fateh Ali Khan alleged at the same press conference that “previously payments were made to the company without my knowledge by the clients and some clients remain trapped. I don’t want the repeat of this episode, so make payments only when I have personally signed on the receiving”.
