How SARS closed in on Durban tycoon Shauwn Mkhize

In an effort to combat tax evasion and criminal activity that undermines the country’s economy, the South African Revenue Services (SARS), raided the home of Durban businesswoman Shauwn Mkhize, affectionately known as MaMkhize.

SARS clamped down on MaMkhize after being granted a preservation order and a search-and-seizure warrant by the Durban High Court. SARS said this was a strategic move to make it increasingly hard and costly for taxpayers who wilfully and intentionally engage in criminal activity.

The orders were obtained to prevent the dissipation of realisable assets, which could hinder the collection of taxes, and to secure evidence of potential non-compliance with tax laws administered by the SARS Commissioner, the nation’s tax-collecting authority said.

Realisable assets are property that can be easily sold or converted to cash.

Previously, a fleet of luxury vehicles belonging to the then famous Mpisane couple, before she separated with her ex-husband Sbu Mpisane, was seized from their luxury Durban home some years ago. These included big brands like Porsche, Ferrari, Rolls Royce Ghost and Maserati and cost around R22 million.

On Tuesday, some 15 police vehicles were parked outside the three entrances of the Durban North mansion, as the raid continued. A locksmith and safe specialist were seen entering the mansion carrying equipment.

MaMkhize’s troubles with SARS are not new as she was previously convicted of VAT fraud. In 2020, SARS successfully obtained a liquidation order against Mkhize's company Zikhuluse Cleaning, Maintenance and Transport for owing about R204-million in unpaid taxes.

“Over the past few years, SARS has been diligently investigating and cracking down on the construction industry so that it complies with tax laws,” SARS said.

SARS enforces the provisions outlined in the Tax Administration Act No. 28 of 2011, with a particular focus on section 163, on preserving and securing assets. This recent enforcement action is one of many steps that SARS has taken in collaboration with the South African Police Service and the Directorate for Priority Crime Investigation (Hawks), to uphold the integrity of our tax system.

SARS Commissioner, Edward Kieswetter, expressed his sincere thanks to the law-enforcement agencies; the South African Police Service, Hawks, and SARS members for the “exemplary cooperation that accomplished this assignment under difficult conditions.”

“SARS will not waiver in executing its mandate without fear, favour, or prejudice, regardless of any person’s standing in society. No one is above the law; it is therefore critically important that SARS acts emphatically to ensure that all meet their legal obligations. Today’s (Tuesday) search-and-seizure operation must communicate an unambiguous message to all that law-enforcement agencies will act to stop lawlessness. The most vulnerable in our society, the aged, and children depend on the state through taxes to assuage and mitigate poverty, unemployment, and hunger. Any wilful defiance of the law will be resisted,” Kieswetter said.

A few years ago MaMkhize splashed R50 million on purchasing top-flight football club Bloemfontein Celtic FC - now renamed Royal AM FC. She also has a reality TV show.

She is the daughter of late eThekwini ANC councillor Dumazile Flora Mkhize who formed a business entity - Zikhulise Cleaning, Maintenance and Transport, which raked in government tenders.

Meanwhile, just recently SARS deputy commissioner Johnstone Makhubu joined civic organisations at a picket outside SARS headquarters in Tshwane, against the safety risks posed to whistleblowers.

At that time, he said SARS was making significant headway in its R37 million tax evasion case against MaMkhize.

In July SARS Advocate Coreth Naude, representing SARS in MaMkhize’s tax evasion case was hospitalised after two unknown assailants opened fire on her outside a hotel parking lot in uMhlanga.

SARS immediately condemned the attack and said that its workers would not be intimidated by criminals.

MaMkhize did not respond to a request for comment.

WhatsApp your views on this story at 071 485 7995.

Daily News