South African singer Makhadzi has found herself dragged to court once again, this time after failing to pay over R290 000 she owes tax consultants, STT Group Holding, for helping reduce her R6million debt with the South African Revenue Service (Sars).
Makhadzi was slapped with a R6,6million taxi bill earlier this year, but it was later reduced to R2 750 000 following the intervention of STT Group Holding.
However, instead of paying the consultants, the singer reportedly left them high and dry, leading to STT filing papers in the Joburg High Court last week to obtain judgment against Makhadzi for failing to remit payment after it helped her to reduce the debt, which had the potential to financially cripple her.
“The defendant had a tax debt with the South African Revenue Service (Sars) to an amount of R6 602 287.40 (Six million six hundred and two thousand two hundred and eighty-seven rands and forty cents),” read the papers.
STT then brokered a “compromise agreement with Sars, which would see Makhadzi’s debt reduced.
A “compromise” agreement occurs when the taxpayer pleads their case that they cannot afford to pay their debt in full and the tax collector grants them reprieve for a reduced amount.
According to the agreement that STT claim to have struck with the musician, they were expected to receive 10 percent of the final agreed upon compromise fee.
“The plaintiff rendered the professional services and the plaintiff succeeded in having the defendant’s debt reduced to R2 750 00.00 (Two million seven hundred and fifty thousand rands),” read the papers.
While Makhadzi initially paid the money owed in two batches, she has since defaulted on payments.
“The defendant undertook to pay the balance and then failed and, or neglected to pay the balance, which amounts to R293 013.03 (Two hundred and ninety-three thousand and thirteen rand and five cents), which is now due, and payable,” read the papers.
