Business mogul and reality TV personality Shauwn Mkhize, known as Mamkhize, and her son, Andile Mpisane, have lost Royal AM after Sars seized it. Facing an outstanding tax debt of approximately R37 million, the tax authority has been given legal approval to auction the club and other valuable assets to recover the owed funds.
Investigations and Asset Seizure
The saga began last year when law enforcement agencies, including the South African Police Service (SAPS), the Hawks, and SARS, conducted a coordinated search-and-seizure operation at Mkhize’s properties in La Lucia, Durban, Sandton, and Pietermaritzburg. During the raid, luxury vehicles valued at over R100 million and other high-end possessions were confiscated.
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At the time, SARS issued a statement emphasizing their commitment to combating tax evasion and illicit financial activities that threaten South Africa’s economy. The KwaZulu-Natal Local Division of the Durban High Court subsequently granted a preservation order and a search-and-seizure warrant, solidifying SARS’s legal stance against Mkhize.
Legal Battle Ends in Defeat
In a last attempt to retain control over Royal AM, MaMkhize sought judicial intervention last week, challenging the court-appointed curator’s authority to oversee the club’s finances. Unfortunately for her, the court ruled in favor of SARS, paving the way for the impending sale of Royal AM.
SARS Upholds Legal Obligations
Following the court’s ruling, SARS Commissioner Edward Kieswetter expressed his satisfaction with the decision, stating,
“We welcome the court’s judgment to dismiss the case due to lack of urgency. Every taxpayer is legally bound to meet their financial obligations, and it is perplexing that some individuals resort to legal battles instead of addressing their tax responsibilities with the same diligence.”
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Kieswetter reaffirmed that SARS operates with impartiality, ensuring that all taxpayers adhere to registration, filing, and payment requirements without exception.
Impending Auction of Assets
With SARS authorized to auction Royal AM, the revenue service is also expected to sell off the previously seized high-end vehicles and other valuable assets to recoup the outstanding debt. As of now, neither MaMkhize nor Royal AM representatives have issued an official statement regarding the latest developments.