According to legal papers submitted by the award-winning record producer at the Johannesburg High Court recently, the 44-year-old, who is known for his sold-out shows across South Africa and internationally, may owe the SA Revenue Service (Sars) millions of rands.
‘I was being assessed to pay arrears income tax in the amount of R40 million by Sars‘, says Nkosinathi Maphumulo.
In court papers, he wrote that he was “being assessed to pay arrears income tax in the amount of R40 million by Sars”, but was able to negotiate his indebtedness to Sars “to an amount of R8 million, after making representation on my present financial position and inability to comply with R40 million assessment”.
He also said he had reached an agreement with Sars to dispose of his immovable properties to generate funds to pay the R8 million, specifically to avoid the attachment of his properties.
Maphumulo’s statement read: “Considering the nature of his business, it is impossible to predict or state his average monthly income due to the fact that it fluctuates substantially as a result of not only market forces, but also the seasonality of the industry.”
Black Coffee’s representative, Kagiso Dinaka, declined to comment on the tax matters.
Finance lawyer and chairperson and co-founder of Tshisevhe Gwina Ratshimbilani Incorporate, Peter Tshisevhe, told City Press that celebrities didn’t always intend to defraud Sars.
‘They are not exposed to the business side of the entertainment business and they always fail to manage their finances’, says Lawyer Peter Tshisevhe.
“They don’t wake up and decide to default Sars. Most of them are good at what they do, but they are not exposed to the business side of the entertainment business and they always fail to manage their finances,” he explained.
Tshisevhe, who in 2015 was rated the best mergers and acquisitions lawyer in Africa and one of the best in the world by the internationally peer-reviewed Best Lawyer’s International listing, said people usually ended up owing Sars millions because of interest and penalties that accumulate over years.
“Tax issues are very complex. It isn’t only celebs who struggle to manage their finances – even businesspeople find themselves on the wrong side of the tax man.”
Tshisevhe blames two things – the lack of exposure and the complexities of financial management.
“Exposure is everything. The word of advice to [celebrities] is that they must seek professional advice in structuring their business affairs.”
The House music deejay and producer is not the first celebrity to find himself in hot water with the tax man.
Others who were previously hauled over the coals were Cassper Nyovest and AKA, who reportedly owed Sars millions.
After Somizi Mhlongo announced the passing of his mum on Saturday many anticipated Rasta to do what he does best, paint celebrities who have passed shortly after it is announced.He does not only paint those who have left us, however he tasks himself to paint famous people. Somgaga appreciated the kind gesture and shared the pictures of his paintings on social media.
Do you know who the biggest SA kid stars are on social media and what makes the popular? Well you’re about to find out. Not only do they have thousands of followers on social media, but they are also paid to promote sponsored posts, star in TV commercials and appear on magazine covers.
Most moms are full of great advice, and are inveterate teachers in general. It’s not uncommon for kids to learn to be philanthropists from their mothers (and mother figures), so it’s no surprise that Kairo Forbes, at her age already, is giving away 100 kiddies masks for free!
Catch Vuyo Ngcukana weaving through the traffic with his new set of wheels. They always say that hard work usually breeds great results, and this notion finally rings true for Vuyo.
