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December 02, 2023

Makhadzi owes SARS more than R6 million

Makhadzi is currently sorting out tax debt
Picture: Supplied

She is the most streamed female artist in South Africa according to Spotify with 23 million streams, 1.5 million listeners in 15 million hours, and 183 countries. Singer and dancer Makhadzi moved from singing at taxi ranks and outside supermarkets to performing on world stages. ZiMoja has learned that since reaching her peak, Makhadzi has defaulted on her taxes.

 

OWING SARS

 

An insider has revealed to ZiMoja that the MaGear singer owes the South African Revenue Services (SARS) over R6 million since her breakthrough in the music industry. In documents seen by ZiMoja, Makhadzi has defaulted on filing her taxes for a few years and was unaware that she was not paying for taxes and VAT on mostly bookings and endorsements.

 

BLAME GAME

 

A source blames Open Mic, the label she was signed to previously, and Makhadzi's former manager, Rita Dee, whom she worked with before joining the label. "She worked with two managers. Both these management companies failed to assist her with filing her taxes. This has caused a heavy backlog for the singer," the insider says. "When she joined Open Mic, she was already owing and the debt accumulated." Makhadzi recently bought a house in Fourways and owns two other properties, one which she built for her family in Limpopo and another in Fourways. "She cannot afford to have those taken away from her. So, she will fix it."

 

PAYING IT OFF


Makhadzi's manager Lucky Tshilimandila confirms that indeed the singer has some outstanding debt with SARS which she is in the process of settling. "Yes, we acknowledge the debt. It goes back to 2016. Makhadzi currently has an arrangement with SARS," Lucky says. As an independent, artist signed to her own label, Makhadzi Entertainment started operating this year. "With that, we want to make sure that we do everything according to the book. We went out and got new accountants to deal directly with the issue. The same way we got a legal team to take care of all paperwork and legalities. Makhadzi is learning. We can put the blame on her when she doesn't give a great performance on stage but we can't blame her for accounting issues and tax matters." Lucky says, adding, that in the next few months, the debt should be paid up. Open Mic Productions boss Lionel Jamela says every artist is responsible for their taxes. "You register yourself at SARS, you do your filling like every employee in any company, that is standard procedure," he says. "I can't comment on what Makhadzi owes. She would be the best person to discuss her finances."

 

MAKHADZI ASSISTED DR MALINGA 

 

Last year, Makhadzi was one of the people who assisted Dr Malinga after he opened up about losing his furniture to the South African Revenue Services (SARS) after owing taxman R500 000. Makhadzi booked him for her one-woman show after he cried while watching they attached his furniture. He said at the time that he was broke with no gigs and no money coming in. However, Dr Malinga told ZiMoja that after the booking, he left the gig unhappy, saying he was treated badly at the Makhadzi concert. "Just because she offered to help me with the booking does not mean I must keep quiet about the bad treatment I received at her event." Dr Malinga said he was paid R35 000 to perform and he used R7 000 for petrol for his bus and R2500 to book accommodation which was promised. "I know she doesn't owe me anything and I don't owe her. But she must not pretend to have a good heart. I came to her saying I will take whatever amount you give me, but not bad treatment."

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