Sars drags Euphonik to court over tax bill

DJ’s production company owes nearly R10m

House music juggernaut DJ Euphonik’s record label has been hit with an almost R10-million tax bill by the taxman.

Euphonik’s company, Euphonik Productions, was dragged to the high court in Joburg by the South African Revenue Service (Sars) after it failed to settle almost R4-milllion of the R9.8-million bill it owed the taxman.

The former 5FM DJ, who has often gasconaded about owning a fleet of luxury vehicles, several townhouses and student accommodation in Gauteng, did not respond to questions.

According to court papers seen by Sunday World, the label owes Sars more than R317,000 in employees tax, more than R130,000 in unemployment insurance fund contributions, more than R150,000 in unpaid skills development levies and more than R3.6-million in unpaid income tax.

It also owes more than R6.3-million in unpaid value added tax.

All these amounts include penalties and interest. The court papers further show that Sars took the matter to court after Euphonik’s label ignored a final letter of demand sent in August.

“According to the records of the South African Revenue Service ( Sars), you have failed to settle in full your outstanding tax debt in the amount of R9,888,396.84,” reads the letter.

In the letter, Sars advises the label to apply to make the payment in instalments if it is unable to pay the full amount owed.

It also asks whether it is possible for the production company to obtain a third-party loan to settle the debt in order to avoid a civil judgment and warrant of execution to sell its assets.

Sars also advises the award-winning muso’s company to apply for a reduction of the amount owed if it is experiencing financial hardships.

But it appears Sars decided to apply for judgment after its counsel and pleas to the company fell on deaf ears. Sars spokesperson Sandile Memela declined to comment due to client confidentiality.

“Sars is bound by Chapter 6 of the Tax Administration Act, 2011, dealing with confidentiality of information, therefore it is not in a position to divulge specific details on the affairs of taxpayers.”

By Ngwako Malatji

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