SARS Commissioner applauds court rulings against MaMkhize amid R37 million tax debt! South African Revenue Service (SARS) Commissioner Edward Kieswetter has welcomed two court judgments against Shauwn “MaMkhize” Mkhize, taking a veiled dig at the controversial businesswoman and reality TV star.
MaMkhize’s Legal Battles with SARS
Mkhize, known for her lavish lifestyle and ownership of Royal AM Football Club, has been embroiled in a tax dispute with SARS for months.
Late last year, SARS raided her luxury mansion in La Lucia, Durban, as part of its efforts to combat tax evasion. The tax authority also secured a preservation order against her football club, Royal AM, effectively placing it under curatorship.
This latest order follows a previous one granted against the Shandi Trust, a financial entity also linked to MaMkhize’s business empire.
Reports indicate that MaMkhize owes SARS at least R37 million in unpaid taxes, a figure that has been the center of her ongoing legal troubles.
Royal AM’s Financial Woes and Legal Challenges
The financial struggles of Royal AM have significantly impacted the club’s operations.
Last month, the National Soccer League (NSL) suspended Royal AM’s remaining fixtures, citing financial instability.
In response, MaMkhize and her legal team filed an urgent court application, demanding that the curator overseeing Royal AM’s finances provide a letter of assurance guaranteeing that the club could meet its financial obligations and continue playing for the rest of the season.
However, this attempt failed, as the court struck the application from the roll with costs, citing a lack of urgency.
A day later, MaMkhize suffered another legal setback when the Pietermaritzburg High Court dismissed an appeal application by the Shandi Trust to overturn the preservation order against it.
Like the Royal AM case, the Shandi Trust’s appeal was also struck from the roll with costs, adding more financial strain to MaMkhize’s legal troubles.
SARS Warns Against Tax Evasion
Following these court rulings, SARS Commissioner Edward Kieswetter issued a strong warning to taxpayers, criticizing those who turn to the courts for relief while failing to meet their tax obligations.
Kieswetter’s Statement
“Taxpayers have a legal obligation to fulfill their tax duties at all times, without fail. It boggles the mind that taxpayers will run to the courts so easily yet fail to meet their tax obligations with the same enthusiasm.”
Kieswetter emphasized that SARS operates without fear or favor in administering the law and ensuring compliance.
“In executing our mandate, SARS remains committed to dealing lawfully with taxpayers who willfully neglect their obligations.”
He further highlighted the importance of tax revenue, stating that taxes are essential for funding pensions, grants, schools, and healthcare services.
“The role of tax in addressing the country’s pressing challenges of financing education, health, and social services cannot be overemphasized.”
A History of Legal and Financial Troubles
MaMkhize’s financial and legal troubles have been making headlines for years.
- In 2022, SARS revealed that she had an outstanding tax bill of R12.7 million, which later ballooned to R37 million.
- Her La Lucia mansion was raided in 2023 as part of SARS’ crackdown on tax evasion.
- In 2024, the courts placed Royal AM under curatorship after reports surfaced that the club was struggling to pay players and staff salaries.
Despite her legal battles, MaMkhize has continued to maintain her high-profile public image, often sharing glamorous moments on her social media platforms.
However, with SARS tightening its grip, her financial empire appears to be under serious threat.
What’s Next for MaMkhize?
With the Pietermaritzburg High Court rejecting her latest appeal, MaMkhize now faces limited options to overturn SARS’ rulings.
- She may attempt to file a new appeal in a higher court, but this could be costly and time-consuming.
- Alternatively, she may seek a financial settlement with SARS, though this would require her to repay a significant portion of her outstanding tax debt.
- If she fails to comply, SARS could seize more of her assets, including properties and business holdings, to recover the owed funds.
Meanwhile, the future of Royal AM remains uncertain, as the club remains under curatorship, with its financial stability in doubt.
Final Thoughts
The court rulings against MaMkhize mark yet another major legal setback for the businesswoman and reality TV star.
As SARS continues to crack down on tax evasion, MaMkhize’s legal battles are far from over. Whether she can resolve her tax issues and save her business empire remains to be seen, but for now, the taxman has the upper hand.