Baskin-Robbins is an American ice cream chain that was established in 1945. In 2017, Baskin-Robbins entered the Pakistani market through a partnership with M/s AHG Flavours to offer 31 ice cream flavours. However, the company has been involved in tax evasion and money-laundering resulting in fines of Rs 3 billion imposed by the Punjab Revenue Authority.
Investigations by Pakistan Customs and the FIA are ongoing, focusing on the high-profile cases of tax evasion and money- laundering involving M/s AHG Flavours. The use of illegal financial channels and under-invoicing to evade taxes through Interlink Corporation has been highlighted in the case. Interlink Corporation is a clearing agency of AHG Flavours involved in the heinous crime as well. It helped how massive under-invoicing started since then. Interlink Corporation, on behalf of AHG Flavours Pvt Ltd, diverted documents to its Dubai-based subsidiary “Interlink Trading” to committed money-laundering
The Consul General in Dubai approached Baskin-Robbins executives, Caner Gursoy and John Varughese, who flatly refused to cooperate with the Pakistan Embassy’s inquiry while the Consul General in Houston declined to contact Baskin-Robbins executives.
Currently, Pakistan Customs is investigating a case involving tax evasion and money laundering by AHG Flavours Private Limited (Baskin-Robbins Pakistan) and Interlink Corporation, on the charges of estimated evasion of PKR 150 million. The investigation is looking into discrepancies in invoices between Baskin-Robbins Pakistan (AHG Flavours) and Interlink Trading FZE, a UAE-based subsidiary of Interlink Corporation. This case underscores the challenges of cross-border cooperation and compliance, with a call for international cooperation and stricter actions to address the issue and safeguard Pakistan’s financial integrity. The Director General of Post Clearance Audit (PCA) has issued a show cause notice on AHG Flavours and Interlink Corporation for PKR 150 million evaded as duties and taxes.
The Federal Board of Revenue (FBR) and Pakistan Customs are actively gathering comprehensive information from banks and relevant institutions to shed light on the financial transactions under scrutiny. The investigation includes verifying the value and sales invoices issued by Dunkin Brands International to AHG Flavours with requests made to the Consul General of Pakistan in Dubai and Houston for verification.
The investigation includes verification of value and sales invoices issued by Dunkin Brands International to AHG Flavours. To corroborate these documents, PCA wrote letters to the Consul General of Pakistan in Dubai and Houston on July 10, 2023, requesting them to engage with Baskin-Robbins offices for verification.
Baskin-Robbins, a well-known ice cream brand, is a subsidiary of Dunkin Brands, Inc., which is part of Inspire Brands, Inc., headquartered in Atlanta, Georgia.
The Consul General in Dubai approached Baskin-Robbins executives, Caner Gursoy and John Varughese, who flatly refused to cooperate with the Pakistan Embassy’s inquiry while the Consul General in Houston declined to contact Baskin-Robbins executives.
As per documents available with Flare Magazine, AHG Flavours serves as the master licensee for Baskin-Robbins in Pakistan. Similarly, Interlink Corporation played proxy (frontman) for AHG Flavours to facilitate customs duty evasion and money laundering through intricate schemes.
Furthermore, it is stated that a UAE-based subsidiary of Interlink Corporation is allegedly used for generating fake invoices and money laundering. Original invoices from Baskin-Robbins show significantly higher shipment values. However, fake invoices produced by Interlink Trading FZE depict much lower values, leading to substantial under-invoicing.
According to the details available with Flare Magazine, the available evidence includes genuine invoices from Baskin-Robbins for shipments made to AHG Flavours, alongside tampered invoices from Interlink Trading FZE. For instance:
– Genuine invoice values:
– US $93,045.95
– US $93,154.02
– US $87,278.27
– Tampered invoice values:
– US $62,984.08
– US $64,486.90
– US $58,771.28
These discrepancies have led to the evasion of substantial customs duties and taxes. AHG Flavours and Interlink Corporation allegedly use illegal financial channels like Hawala/Hundi and external import financing (EIFs) to transfer undeclared funds abroad.
Abdul Qayyum Hafeez, the complainant, has urged PCA to take immediate action against AHG Flavours Pvt. Ltd. and Interlink Corporation. He requested the Federal Board of Revenue (FBR) to liaise with the Federal Customs Authority of the UAE and US Customs and Border Protection for document verification.
According to details, the alleged tax evasion by AHG Flavours and Interlink Corporation upon being detected resulted in a loss of over PKR 1 billion from 2018 to 2021.
The Federal Investigation Agency’s Anti-Money Laundering Cell (FIA AMLC) has launched an extensive investigation into an alleged money laundering operation worth $10 million. The inquiry focuses on potential violations of multiple sections of the Foreign Exchange Regulation Act 1947, specifically Sections 4, 5, 6, 8, and 23.
The investigation was prompted by a formal complaint lodged through the Pakistan Embassy in Washington DC, which subsequently routed the complaint via the Ministry of Foreign Affairs and the Ministry of Interior. The FIA AMLC Lahore is now tasked with examining the evidence surrounding the illegal transfer of USD $997,565.50 from Pakistan to the UAE and the USA.
Three cheques totaling PKR 98 million were issued from AHG Flavours’ account at Bank Al Habib (Account No 0981 008167019), with cheque numbers 10374734, 10374745, and 10378445, along with an additional PKR 57.77 million provided in cash.
Once in Dubai, Interlink Trading FZC consolidated the funds in its bank account at RAK Bank (Acct No 8372664597902). Subsequently, USD $997,565.50 was transferred to Baskin Robbins’ bank accounts in Dubai and New York through a series of five transactions designed to avoid banking scrutiny in both the UAE and the USA.
To further conceal the illicit nature of these funds, the transactions were later declared as over-payments or payments made in error. This allowed Baskin Robbins to return the money to Irfan Mustafa’s bank accounts in Dubai and Switzerland.
Flare reached out to Chairman Irfan Mustafa and CEO Gibran Mustafa of AHG Flavours, who brought a Baskin-Robbins brand in Pakistan, to clarify that they are operating within the bounds of the law and have not engaged in tax evasion or money-laundering. The company is currently dealing with cases brought by the Punjab Revenue Authority and the Federal Investigation Agency’s Anti-Money Laundering Cell (FIA AMLC). They are prepared to present all necessary documentation and evidence in court to demonstrate that their company is not involved in the alleged criminal activities.
There is a query Baskin-Robbins ice cream is certified halal because the Islamic Food and Nutrition Council of America (IFANCA) certified halal but in Pakistan, no certificate from any department and Islamic version recognised that Baskin-Robbins ice cream is halal food and safe for health.
A report was published in the media about the Baskin-Robbins ice cream whether it was safe for human health and what are ingredients used in the ice cream. When it comes to ice cream, there are some big names everyone will recognize: Ben & Jerry’s, Häagen-Dazs, and Breyer’s, just to name a few. But there’s one that’s been synonymous with ice cream shops for decades, a brand that first became famous for its 31 flavours, one for each day of the month: Baskin-Robbins, the company that appeals to childhood nostalgia. It was the first big brand to expand past just a few flavour options, even if some of those eccentric Baskin-Robbins flavours never made it to store shelves.
Unfortunately, when you look at the ingredient list, the findings can be less than ideal. Ice cream brands vary in ingredient quality, but Baskin-Robbins is on the lower end of that spectrum. Like many other brands, Baskin-Robbins makes use of food colourings like Blue 1, but it’s more than just dyes — the company also utilises different gums, high fructose corn syrup, vegetable oils, and other undesirable ingredients.
Several of these ice cream ingredients are perhaps not what you’d want to be eating given the choice. Studies exist that indicate Blue 1 may have toxic effects on humans, and may have associations with the development of ADHD. Guar gum, a key part of the company’s stabiliser-emulsifier blend, may cause digestive issues like bloating and potential allergic reactions, and Baskin-Robbins uses it in 21 different flavours.
Six different flavours, meanwhile, make use of high fructose corn syrup, which can contribute to heart disease and diabetes. Vegetable oil isn’t as potentially bad for health as some of these other ingredients, but it’s also typically used as a cheaper alternative to actual milk fat — and several of Baskin-Robbins’ flavours use palm oil specifically, which is heavily linked to deforestation.
Another media report revealed that so many Americans now scooping frozen yoghurt and gelato—and the rest watching their weight—Baskin-Robbins has faced dark days. The ice cream chain steadily closed stores in recent years as parent company Dunkin’ Brands focused on an ambitious expansion of its flagship doughnut shop. The 69-year-old brand once celebrated for its 31 flavours, it seemed, was losing steam. But there are signs now that it’s making small improvements.
Consuming Baskin-Robbins ice cream can be part of a balanced diet if enjoyed in moderation, considering the high calorie and sugar content and its potential impact on heart health due to saturated fats. Artificial flavours and colours, while approved for use, may be of concern to some consumers. Regular consumption, especially in large portions, can contribute to obesity and diabetes. For those with lactose intolerance, it’s crucial to manage portion sizes or opt for lactose-free alternatives. Mindful indulgence with attention to portion and frequency is key for those looking to maintain their health while enjoying ice cream.
The caloric content of Baskin-Robbins ice cream can vary widely depending on the flavour and serving size. For instance, a single 4 oz scoop can range from approximately 170 to 300 calories. When considering the average daily calorie intake recommended for adults – 2,000 to 2,500 calories – indulging in a scoop of Baskin-Robbins ice cream can potentially account for a substantial portion of one’s caloric allotment, particularly if additional toppings added.
