Shauwn Mkhize faces mounting legal and financial troubles as SARS tightens its grip on Royal AM FC over unpaid taxes, threatening the club’s future.
South African businesswoman and Royal AM Football Club owner, Shauwn “MaMkhize” Mkhize, is facing escalating legal challenges as the South African Revenue Service (SARS) tightens its grip on her assets due to substantial tax liabilities.
The North Gauteng High Court recently dismissed Mkhize’s urgent application to compel a court-appointed curator to issue a financial assurance letter to the National Soccer League (NSL), affirming the club’s fiscal stability.
This decision has significant implications for Royal AM FC’s participation in ongoing soccer tournaments.
The court’s ruling underscores the judiciary’s stance on the necessity for taxpayers to fulfill their obligations promptly.
SARS Commissioner Edward Kieswetter emphasized this point, stating, “It boggles the mind that taxpayers will turn to courts with ease yet derelict in their responsibility to meet their obligations with similar enthusiasm.”
He reiterated SARS’s commitment to enforcing tax laws impartially, ensuring all taxpayers comply with their duties.
Royal AM FC has been grappling with financial instability, leading to missed matches in both the Betway Premiership and Nedbank Cup tournaments.
The club’s financial woes have been exacerbated by its failure to pay player salaries in December, raising concerns about its operational viability.
Reports indicate that the club owes SARS approximately R37 million in unpaid taxes, a debt that has prompted legal actions and asset seizures.
In response to the mounting tax debt, SARS has taken decisive measures to recover the owed funds. In October 2024, the KwaZulu-Natal High Court authorized the seizure of Royal AM’s movable assets to address the outstanding tax liability.
Following this, in November 2024, SARS officials conducted raids on properties linked to Mkhize in Durban and Pietermaritzburg, intensifying the scrutiny of her financial affairs.
The financial turmoil has also cast doubt on Royal AM FC’s sponsorship agreements. The Msunduzi Municipality’s three-year sponsorship deal worth R27 million is under threat due to the club’s fiscal challenges.
The municipality has withheld the second installment of R9 million, citing the club’s failure to meet contractual obligations, including the submission of an annual financial report detailing the utilization of the funds.
The situation is further complicated by legal actions seeking to terminate the sponsorship, with court proceedings scheduled to address the matter.
Mkhize’s legal troubles are not confined to tax disputes. The club has been fined approximately R414,000 by FIFA for failing to honor payment obligations related to player transfers, adding another layer to its financial and legal predicaments.
The recent court decisions have left SARS in full control of Royal AM FC’s administration, with the possibility of liquidation looming if the tax debts remain unsettled.
Mkhize’s attempts to challenge SARS’s actions in court have thus far been unsuccessful, leading to increased pressure on her business operations.
These developments highlight the critical importance of adhering to tax regulations and the severe consequences of non-compliance.
As SARS continues to enforce tax laws rigorously, individuals and entities are reminded of their obligations to meet tax responsibilities promptly to avoid similar legal and financial repercussions.
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