DJ Maphorisa Takes SARS to Court Over R3.3 Million Tax Bill
Amapiano heavyweight DJ Maphorisa is locked in a fierce legal battle with the South African Revenue Service (SARS) over a disputed R3.3 million tax bill.
According to court documents seen by Sunday World, Maphorisa has dragged SARS to the South African Tax Court at Megawatt Park in Johannesburg after efforts to settle the dispute failed.
The case stems from an income tax audit initiated in 2018, during which SARS accused the star of failing to submit tax returns and intentionally evading tax.
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SARS Claims Intentional Tax Evasion
SARS informed Maphorisa on July 13, 2018, that it intended to conduct an audit of his finances after discovering he had not filed his tax returns. The tax authority requested several documents, including IRP5/IT3 certificates, investment income certificates, and bank statements.
Following its assessment, SARS concluded that funds deposited into Maphorisa’s FNB account formed part of his gross income. The agency imposed penalties of 200%, accusing him of deliberate tax evasion.
“The respondent has proven the facts relied upon to impose the USP (underestimated penalties) at the rate of 200% on the basis that the appellant’s conduct is correctly classified as intentional tax evasion,” read the court papers.
Dj Maphorisa Disputes the Assessment
In his appeal, Maphorisa maintains that the taxman’s findings are flawed and that SARS failed to consider key expense deductions. He insists that he submitted the necessary documents through his Standard Bank account and that some funds flagged as income were actually inter-account transfers, not taxable earnings.
“The appellant asserts that SARS failed to take the requisite deductions (expense items) into account when assessing the appellant.
The appellant asserts that he has provided sufficient evidence that the amount in dispute does not form part of his gross income but amounts to inter-account transfers and should not be taxed,” the papers state.
Maphorisa also cited mental ill-health as a factor contributing to delays in filing his tax returns.
Failed Negotiations and Ongoing Appeal
Court records reveal that Maphorisa filed objections to SARS’ assessments in 2022, covering tax years between 2015 and 2017. However, SARS rejected his objections, prompting him to lodge a formal appeal on September 6, 2022.
“The parties agree that settlement negotiations were entered into but were, however, unsuccessful,” the documents read.
With the matter now before the South African Tax Court, Maphorisa is determined to challenge both the R3.3 million tax liability and the severe penalties imposed by SARS.