Durban High Court: Orders Mamkhize Property Sale for SARS

• The Durban High Court has authorized the sale of five Sandown properties linked to Shauwn "MaMkhize" Mkhize, following an urgent application by SARS.
• The properties, valued at R35 million, were deteriorating and incurring significant costs for security, insurance, and municipal charges.
• Although not registered in Mkhize's name, SARS contends she is the ultimate beneficial owner, a claim disputed by Mkhize and her son.
• Judge Jacqueline Henriques dismissed the primary residence argument, citing Mkhize's other properties and her son's stated address in La Lucia.
• Sale proceeds will be held in a trust account, with SARS required to bring a separate action within one month to claim the funds for outstanding tax debts.

This ruling highlights SARS's aggressive stance in recovering outstanding tax debts, demonstrating their willingness to pursue assets where beneficial ownership is disputed and not directly registered to the taxpayer.

The Durban High Court has granted an order for the sale of five properties situated in Sandown, Johannesburg, which are linked to prominent businesswoman Shauwn "MaMkhize" Mkhize. This significant ruling, issued by Judge Jacqueline Henriques on Monday, October 26, followed an urgent application by the South African Revenue Service (SARS). The court found that the properties were rapidly losing value due to escalating maintenance costs and general deterioration.

Evidence presented to the court highlighted the substantial financial burden associated with these assets. SARS was reportedly incurring R188,261.90 monthly for private security services and an additional R97,922.30 every six months for insurance premiums. Furthermore, as of October 3, 2025, four of the properties had accumulated R1.79 million in unpaid municipal charges. A professional valuation conducted on October 13, 2025, estimated the combined market value of the properties at approximately R35 million, but their forced-sale value was considerably lower, at R24.5 million. A valuer also noted significant damp damage and overall poor maintenance, while the City of Johannesburg had issued a contravention notice for unapproved building work at 56 Adrianne Street, which encompasses four of the properties.

A central point of contention in the case was the actual ownership of the properties. Despite SARS's assertion that Ms. Mkhize is the ultimate beneficial owner, none of the five properties are formally registered in her name. Instead, four are registered under Yaron Peretz, with the fifth property belonging to 22 Aston Investments (Pty) Ltd. This complex ownership structure underscores SARS's aggressive stance in pursuing assets where beneficial ownership is disputed, a key aspect of their enforcement strategy against property tax debt.

Ms. Mkhize and her son, Andile Mpisane, actively opposed the sale, with their legal representatives arguing that the properties served as their primary residence. However, Judge Henriques dismissed this argument, noting that Ms. Mkhize possessed other properties she could occupy. The judge also pointed out that Mr. Mpisane's own court documents listed his address as a property located in La Lucia, directly contradicting the claim. The properties have been subject to a preservation order since November 21, 2024, indicating prior legal action to secure these assets.

Judge Henriques underscored the fundamental civic duty of taxpayers in her judgment, stating, "Paying tax is not a punishment, it is a responsibility." This ruling highlights SARS's aggressive stance in recovering outstanding tax debts, demonstrating their willingness to pursue assets where beneficial ownership is disputed and not directly registered to the taxpayer. The court's decision provides a clear pathway for the sale to proceed, but with specific conditions governing the handling of the proceeds.

Following the sale, all funds must be deposited into an interest-bearing trust account, which will be managed by the court-appointed curator. Crucially, the court has mandated that SARS must initiate a separate legal action within one month from the date of the order to formally establish its right to utilize these properties or their sale proceeds to settle outstanding tax debts. Furthermore, the curator is permitted to pay Yaron Peretz any outstanding balance from the original purchase, but only if this amount is mutually agreed upon by all parties or confirmed by a subsequent court order. The remaining funds will remain in trust until this separate action is conclusively decided, emphasizing the ongoing legal complexities surrounding the Durban High Court Mamkhize property sale SARS.

This ruling highlights SARS's aggressive stance in recovering outstanding tax debts, demonstrating their willingness to pursue assets where beneficial ownership is disputed and not directly registered to the taxpayer. Lawyers should advise clients on the critical importance of transparent beneficial ownership structures and prepare for potential asset recovery actions by SARS, even when assets are already under preservation orders.

Source: Original reporting via Scrolla