Final liquidation order issued against businesswoman Shauwn Mkhize’s company

Shauwn Mkhize. (Photo: Shauwn Mkhize Twitter)
Shauwn Mkhize. (Photo: Shauwn Mkhize Twitter)

A final liquidation order has been issued by the high court in Pretoria against a company owned by well-known KwaZulu-Natal businesswoman and socialite Shauwn Mkhize, formerly Mpisane, this week.

According to TimesLive, the application was brought by the SA Revenue Service (Sars) for outstanding debts totalling about R204 million.

Sars welcomed the judgment against Zikhulise Cleaning Maintenance and Transport Service, which it said affirmed its right to liquidate a taxpayer where an assessment is under appeal.  

Zikhulise Cleaning Maintenance & Transport was provisionally placed in liquidation in 2018, untill the court on Wednesday issued a final liquidation order against the company, which it appealed.

In March last year, TimesLIVE also reported a number of unmarked vehicles descended on prominent power (then) couple Shauwn and S'bu Mpisane's plush mansion in Durban North.

The visit by officials from Sars was believed to be in relation to an alleged R141m debt owed to them.

TimesLIVE reported that various members of the National Intervention Unit (NIU) as well as a number of unidentified people were seen entering the home under the watchful eye of the couple's private security personnel.

They previously had their assets seized by Sars in 2016 under the Tax Administration Act. Apart from their three-storey mansion in La Lucia, a  farm in the KwaZulu-Natal Midlands registered under the Sbusha Trust, a BMW X5, a Dodge Ram and other cars were also seized.

When the liquidation case was before the courts previously, Mkhize had repeatedly stated that Sars was biased and acted in bad faith by declining to enter into a deferred payment arrangement. The court dismissed that claim.

Sars issued a statement on Friday saying the company attempted to show that it met the solvency test by disputing its debt to Sars. The judge relied on Sars' version of the company’s indebtedness and confirmed that the company was factually and legally insolvent.

An important precedent has been set by the judgment, said Sars.

“It empowers Sars to act decisively against a taxpayer who attempts to circumvent its fiscal obligations by using the court process to restrict Sars from collecting outstanding debt. While Sars will always respect the right of taxpayers to approach the courts to seek relief, it will oppose any such court action if it is vexatious and intent on stalling the debt collection process.”

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