DJ Maphorisa is reportedly embroiled in a legal battle with the South African Revenue Service (Sars) over a disputed tax bill amounting to R3.3 million.
According to Sunday World, the award-winning producer, whose real name is Themba Sonnyboy Sekowe, has taken Sars to the South African Tax Court in Johannesburg after attempts to resolve the matter failed.
Court documents reveal that Sars first notified Maphorisa in July 2018 of its intention to conduct an income tax audit, citing that he had not submitted his returns.
The agency requested supporting documents, including IRP5 and IT3 certificates, investment income records, and bank statements.
Maphorisa allegedly told officials during a pre-trial conference that his tax returns were eventually filed after the audit began, adding that delays were due to mental health challenges.
After completing its audit, Sars reportedly raised questions about funds paid into Maphorisa’s FNB account, arguing they formed part of his undeclared gross income.
The tax authority later issued findings in November 2018, concluding that the artist had “intentionally evaded tax,” and imposed a 200% penalty on the assessed amount.
“The respondent has proven the facts relied upon to impose the USP (understatement penalties) at the rate of 200% on the basis that the appellant’s conduct is correctly classified as intentional tax evasion,” read part of the court papers.
Sars said it had finalised the audit in December 2018 using available bank data after Maphorisa allegedly failed to respond to its findings. It raised assessments that totalled over R3.3 million.
The Mnike hitmaker later filed formal objections in 2022, disputing assessments for the 2015 to 2017 tax years.
His objections were, however, dismissed by Sars, prompting him to lodge an appeal in September 2022.
In his appeal, Maphorisa argued that Sars had not properly calculated his tax liability and failed to consider his expense deductions.
He also challenged the fairness of the penalties, insisting that “the imposition of the USP by Sars has not been reasonable.”
The case is now before the Tax Court, where Maphorisa hopes to have the multi-million-rand bill overturned.