Singer and dancer Makhadzi,is currently the most streamed female artist in South Africa according to Spotify, with 23 million streams and 1.5 million listeners. She has gained popularity and success, performing on world stages after starting her career singing at taxi ranks and outside supermarkets.
However, it has been revealed that Makhadzi has defaulted on her taxes to the South African Revenue Services (SARS), owing over R6 million since her breakthrough in the music industry. Documents indicate that she failed to file her taxes for a few years and was not aware that she needed to pay taxes and VAT on her bookings and endorsements.
An insider source places partial blame on Makhadzi's former manager, Rita Dee, and the label she was previously signed to, Open Mic. According to the insider, both management companies failed to assist her with filing her taxes, causing a significant backlog of debt. Makhadzi recently purchased a house in Fourways and owns two other properties, which she is determined to protect. "She cannot afford to have those taken away from her. So, she will fix it."
Makhadzi's current manager, Lucky Tshilimandila, confirms the outstanding debt with SARS and acknowledges that it dates back to 2016. They have entered into an arrangement with SARS to settle the debt. Makhadzi Entertainment, her own label which started operating this year, has hired new accountants to address the accounting and tax issues. They aim to ensure that everything is done correctly and legally.
Lucky Tshilimandila emphasizes that while Makhadzi takes responsibility for her performances on stage, accounting and tax matters are not within her control. He states that the debt should be paid off in the coming months. Lionel Jamela, the boss of Open Mic Productions, comments that every artist is responsible for their taxes and should register themselves at SARS.
