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Major League DJz star Banele Khanya Mbere is facing a R1.19m tax demand from the South African Revenue Service (Sars), with the revenue collector warning that failure to settle the debt could trigger further legal enforcement action, including having his assets put up for auction to recover the debt.
A Sars final letter of demand seen by the Sunday Times shows that the DJ has been called on to settle an overdue amount of just over R1.19m.
The document, served to Mbere on August 18, provides a glimpse into the tax dispute involving Mbere who, together with Major League DJz partner and twin brother Bandile, has established himself as one of the prominent names in South Africa’s entertainment industry.
The demand does not set out the circumstances that led to the tax debt in detail, but Sars makes it clear that its records show an outstanding amount that it expects Mbere to address.
The revenue service states in the letter: “According to the records of the South African Revenue Service, you have failed to pay your tax debt for one or more tax year(s) and/or tax period(s).”
The demand sets out the amount Sars says is overdue and calls on Mbere to take action within a specified period.
According to the letter, Mbere has 10 business days from the date of the demand to make full payment.
“You are requested to make full payment within 10 business days from the date of this letter of demand.”
The demand also provides Mbere with an opportunity to engage with Sars should he be unable to settle the amount in full.
This includes making arrangements with the revenue service regarding the outstanding debt. The letter indicates that taxpayers may approach Sars to discuss payment arrangements, including instalments, subject to the applicable requirements.
The demand is significant because Sars does not simply notify Mbere of the amount outstanding. It also sets out the consequences that may follow should he fail to respond to the demand or use the remedies available to him.
The letter warns: “Failure to make full payment or use the above remedies may result in the following actions and possibly others.”
Among the enforcement measures outlined by Sars is the possibility of appointing a third party to pay the amount owed to the revenue service.
This means that, depending on the circumstances, Sars could take steps that extend beyond simply demanding payment directly from the taxpayer.
The letter also warns of possible court action.
Sars states that a civil judgment could be entered against Mbere, with the possibility of a warrant of execution subsequently being issued.
“A civil judgment being entered against you in which case a warrant of execution may be issued by the Sheriff of the Court to attach and sell your assets.”
The warning potentially places Mbere’s assets in the crosshairs should the matter remain unresolved and Sars proceed with enforcement.
However, the demand also makes provision for taxpayers who are unable to pay their debts in full.
The document indicates that a natural person may apply for a reduction of the amount owed, though such an application would be subject to the relevant requirements and Sars’ consideration of the taxpayer’s circumstances.
The document was filed electronically on August 18 at 9.24am, according to the court cover page.
The demand comes against the backdrop of Major League DJz’s rise from South African nightlife favourites to an internationally recognised DJ act.
The duo has developed a significant following through their music and live performances, while Mbere has remained a prominent figure in the group.
But the Sars demand now puts his personal tax affairs under scrutiny.
The document does not allege criminal conduct by Mbere, nor does it explain why the tax amount became outstanding. It records the amount as a tax debt and sets out Sars’ demand for payment and the consequences of failing to address it.
Sars spokesperson Siphithi Sibeko said the institution was prohibited from divulging confidential taxpayer information to the media.
“I am prohibited by law from divulging confidential taxpayer information, so Sars will not be commenting on your questions,” he said.
The distinction is important because a tax demand does not, by itself, establish wrongdoing beyond the existence of an amount that Sars says is due.
Mbere could still dispute the amount, settle the debt, enter into a payment arrangement or pursue another remedy available to him.
The demand nevertheless provides a clear deadline and a warning of what could happen if the matter is not resolved.
With the amount exceeding R1.1m, the case could become an uncomfortable financial headache for the Major League DJz star if Sars proceeds with enforcement.
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