Award-winning songbird Makhadzi’s multi-million rands tax bill has been drastically reduced by a whopping 60%, hardly a month after she unleashed tax consultants on the South African Revenue Services (Sars) to challenge the taxman.
The Matorokisi hitmaker was slapped with a staggering R6.6-million tax bill by Sars early this year.
But the jaw-dropping quantum was swiftly decreased to R2 750 000 after Makhadzi unleashed a Joburg-based tax consultant, STT Group Holding, to challenge the taxman on the astronomical figures.
The entity charged Makhadzi just over R400 000 for helping her to reduce the amount but instead of paying, South Africa’s most sought-after female artist disappeared into thin air.
The shocking news came to the fore when STT Group Holding filed papers in the Joburg high court last week to obtain judgment against Makhadzi for failing to remit payment after it helped her to reduce the debt, which had the potential to financially cripple her.
In the court papers, which we have seen, STT Group Holding said on August 14 this year, it entered into a verbal agreement to render professional tax consulting services for the singer, real name Ndivhudzannyi Decorate Ralivhona.
“The defendant had a tax debt with the South African Revenue Services (Sars) to an amount of R6 602 287.40 (Six million six hundred and two thousand two hundred and eighty-seven rands and forty cents),” read the papers.
Makhadzi’s debt was reduced when the company entered into a “compromise” agreement with Sars.
A “compromised” agreement occurs when the taxpayer pleads their case that they cannot afford to pay their debt in full and the tax collector grants them reprieve for a reduced amount.
After Makhadzi’s tax bill was slashed, said STT Group Holding, they agreed that the company would receive a payment of over R385 000 compromise success fee, which is 10% of the compromise debt.
The entity said it succeeded to reduce Makhadzi’s debt by almost R4-million.
“The plaintiff rendered the professional services and the plaintiff succeeded in having the defendant’s debt reduced to R2 750 00.00 (Two million seven hundred and fifty thousand rands),” read the papers.
The company said it then issued an invoice to Makhadzi for over R443 000 for payment on August 23, this includes the value added tax of over R57 000.
Makhadzi made a payment of R100 000 to the company on August 31 and another R50 000 on September 5.
“The defendant undertook to pay the balance and then failed and, or neglected to pay the balance, which amounts to R293 013.03 (Two hundred and ninety-three thousand and thirteen rand and five cents), which is now due, and payable,” read the papers.
The company said when Makhadzi refused to settle the outstanding amount, its lawyers sent her a letter of demand to pay the money, but she refused.
The company said it had no choice but to drag the singer to court to obtain a judgment against her.
Attempts to solicit comments from Makhadzi drew a blank as she ignored our calls and text messages.
