South African singer Makhadzi, who is famous for her song Matorokisi, got a huge relief from her tax woes when she hired a tax consultant to negotiate with Sars. The singer, whose real name is Ndivhudzannyi Decorate Ralivhona, owed Sars a massive R6.6-million in taxes, but the amount was cut down by 60% to R2.75-million after the consultant reached a compromise deal with the tax authority.
However, Makhadzi did not pay the consultant, STT Group Holding, their fee of over R400 000 for their services. The company claims that they had a verbal agreement with the singer on August 14 this year, and that they successfully reduced her tax debt by almost R4-million. They invoiced her for over R443 000, including VAT, on August 23, but she only paid R150 000 in two instalments and then stopped.
The company then sent her a letter of demand for the remaining R293 013.03, but she ignored it. They decided to take legal action against her and filed papers in the Joburg high court last week, seeking a judgment against her. Makhadzi did not respond to our calls and messages for comment.