Royal AM owner MaMkhize loses court battle against SARS as tax woes deepen

Shauwn “MaMkhize” Mkhize, the controversial owner of Royal AM Football Club, has suffered another legal blow after her court case against the South African Revenue Service (SARS) was struck off the roll earlier this week.

Reports indicate that SARS is now in control of Royal AM through curatorship as part of its efforts to recover unpaid taxes owed by MaMkhize. Liquidation of the club is also being considered, raising serious concerns about the future of the KwaZulu-Natal-based team.

SARS Takes Over Royal AM

According to SABC Sport, Royal AM had approached the courts to challenge SARS’ decision to place the club under a curator. The legal battle stems from MaMkhize’s ongoing tax dispute, which has now impacted the club’s financial stability and operations.

One of the key arguments made by Royal AM’s legal team was that Andile Mpisane, MaMkhize’s son and club chairman, was not personally involved in the tax dispute and, therefore, the team should not be affected by his mother’s financial troubles.

However, the court dismissed the club’s application, meaning SARS will continue overseeing Royal AM’s administration. This decision has effectively stripped MaMkhize of full control over the club’s financial affairs.

MaMkhize’s Growing Tax Debt

The current tax troubles faced by MaMkhize are not new. Reports first surfaced two years ago that she owed SARS R12.7 million. However, her tax debt has since ballooned to over R40 million due to accumulating interest, penalties, and legal costs.

Adding to her financial woes, Royal AM was recently ordered to pay former Kaizer Chiefs striker Samir Nurkovic his full contract amount after a legal dispute. This pushed the club’s financial strain even further, with reports suggesting that the club’s total debt now exceeds R37 million.

In 2023, MaMkhize’s R20 million La Lucia mansion was raided by SARS officials as part of an ongoing investigation into tax evasion and financial mismanagement. The tax authority stated that the operation was part of its broader mission to combat tax evasion and criminal activities that harm the country’s economy.

Royal AM Players and Staff Affected

The tax controversy has seriously affected Royal AM’s operations, with reports emerging that the club struggled to pay salaries for its players and staff.

In response to these claims, MaMkhize issued a public statement explaining the situation at Royal AM. The statement read:

“The club’s management team, led by our CEO and General Manager, has been working diligently with the curator to secure the necessary permissions to release funds for salary payments.

It has always been the ethos of Royal AM to prioritise the well-being of our personnel, and we remain dedicated to upholding that principle despite the current challenges.”

Despite her reassurances, reports indicate that financial difficulties continue to plague the club, raising concerns over whether Royal AM can survive the mounting financial pressures.

MaMkhize Fails to Meet SARS’ Deadline Again

MaMkhize’s legal troubles worsened this week after she reportedly missed yet another deadline to submit tax-related documents requested by SARS.

Insiders claim that SARS had given the Royal AM owner a strict deadline to hand over the necessary financial documents, but she failed to comply for the second time.

This latest development could further complicate her legal standing, as failure to provide the required documents could lead to additional penalties, legal action, or even criminal charges for tax evasion.

What’s Next for MaMkhize and Royal AM?

With SARS tightening its grip on Royal AM, questions remain about the club’s future. If SARS proceeds with liquidation, the team could face serious consequences, including:

• Forced sale of assets to cover outstanding tax debts.
• Further financial instability, affecting players, coaches, and staff.
• Potential relegation or disbandment if financial troubles persist.

For MaMkhize, the pressure is mounting. Legal experts suggest that she may need to negotiate a settlement with SARS or risk losing her club entirely.

As the battle between Royal AM, MaMkhize, and SARS continues, all eyes are now on whether the multimillionaire businesswoman can find a way out of her growing financial crisis—or if Royal AM will become another casualty of South Africa’s crackdown on tax evasion.