Royal AM boss Shawn Mkhize set to lose property over R37 million tax payment

Businesswoman Shauwn Mkhize is facing yet another tax-related controversy, with reports indicating that she may be at risk of losing some of her assets.

The founder of Royal AM allegedly owes the South African Revenue Service (Sars) a substantial amount of over R37 million in unpaid taxes.

This is not the first time Mkhize has been embroiled in tax disputes, as in 2020, Sars obtained a liquidation order against her cleaning business due to an outstanding tax debt of more than R200,000.

According to recent reports by the City Press, Sars has made new allegations, claiming that Mkhize has once again failed to fulfill her tax obligations.

According to the publication, the revenue collector is petitioning the Pietermaritzburg High Court to seize 13 luxury vehicles, including a Lamborghini and a Rolls Royce, owned by Shandi Trust and Royal AM, entities where Mkhize is the major shareholder.

“Any auction sale, must, at the very least, be advertised in a manner required, in the event of a sale in execution and in the case of movable assets, an advertisement must be published at least five business days prior to the auction,” the court papers read.

“Within seven days of granting of this order, all motor vehicles belonging to the Shandi Trust must be delivered to the curator (Sars). Pending such delivery, such motor vehicle may be used by the person presently entitled to use such a vehicle, provided that, before any such use, the curator be satisfied by presentation to him of such proof as he may reasonably require that the vehicle is properly in favour of the Shandi Trust and that the vehicle will only be used in terms of the restrictions of such insurance policy,” it added.

In City Press’ report, it also stated, “It has also been widely reported that the ANC-led Msunduzi Municipality council stripped Maritzburg United of funding and pushed through a lucrative R27-million sponsorship deal as a financial aid to Royal AM.

“City Press understands that this week, curators visited the reality TV star’s mansion in La Lucia, Durban, and her other property in Johannesburg.

“However, the curators could not gain access to Mkhize’s Johannesburg property as there was allegedly a standoff between them and the security guards, according to a source. Police officers were called, but they did not arrive,” the report concluded.

While Mkhize faces issues with the tax collector, there are also unresolved situations involving former Thwihli Thwahla players who are awaiting payment.

TS Galaxy striker Samir Nurkovic had his two-year contract prematurely terminated, being released two months into the deal without payment. Fifa subsequently imposed a transfer ban on Royal AM after they failed to pay the R12 million owed to the 31-year-old by the specified deadline.

Also, Brazilian Ricardo Nascimento was released by the Pietermaritzburg-based club in the latter stages of the 2022-23 season, with just two months remaining on his contract. After his dismissal, he referred his case to Fifa’s dispute resolution chamber (DRC), seeking the remuneration he felt was owed according to his contract. The club rejected his request, arguing that the option clause in his contract was not exercised, meaning he was only entitled to the salary for the remaining two months. Nascimento took the matter to the football governing body and succeeded in his appeal, with Royal AM being ordered to pay a sum of R600,000 – a ruling the club rejected.

As Sars remain determined to collect Mkhize’s outstanding taxes, her collection of luxury cars is at risk of being seized to settle the debt.

Furthermore, her team finished the 2023-24 Premier Soccer League season in 13th place on the league standings.

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