The South African Revenue Service (Sars) is tightening the screws on house music legend DJ Ganyani, demanding millions of rands in unpaid taxes from both the artist and his record label, Ganyani Entertainment.
This comes after Sars slapped Ganyani with a personal tax bill exceeding R4 million earlier this year, a move that reportedly threatened the auctioning off of his assets if the debt remained unsettled.
The latest development sees Sars taking legal action against Ganyani Entertainment, seeking a court order to force the label to settle a debt exceeding R1 million. According to court documents, the label owes Sars over R500 000 in unpaid company income tax, with penalties pushing the total debt to over R800 000.
The label also owes Sars over R76 000 in unpaid Pay As You Earn (PAYE) and R22 000 in additional tax, with penalties and interest further increasing the debt to over R183 000.
Ganyani Entertainment also faces a R28 000 debt for unpaid Unemployment Insurance Fund (UIF) contributions, and a R12 000 debt for unpaid skills development levy.
Sars's pursuit of Ganyani Entertainment stems from the label's failure to enter into a payment plan to settle the debt. The taxman had previously sent a letter of demand, urging the label to settle the debt within 10 days and warning of potential asset seizure if the debt remained unpaid.
"According to the records of the South African Revenue Service, you have failed to pay your tax debt for one or more tax years and tax periods … you are requested to make full payment within 10 days from the date of this letter of demand," reads the letter.
Sars also advised Ganyani Entertainment to apply for a payment plan if they were unable to settle the full amount, or to apply for suspension of the debt if they intended to dispute the tax assessment.
"Failure to make full payment or use the above remedies may result in the following actions and possibly others: Sars may appoint any third party who presently or in the future will owe you money or hold money for you to settle your tax debt with this money.
“A civil judgment is being entered against you, in which case a warrant of execution may be issued for the sheriff of the court to attach and sell your assets," the letter warns.
Ganyani, who has previously denied knowledge of the personal tax bill, claiming his accountant had submitted all necessary documentation to Sars, has yet to publicly address the latest legal action against his record label.
The news of Sars's pursuit of DJ Ganyani and his label has sent shockwaves through the music industry, highlighting the challenges faced by artists and businesses when it comes to tax compliance.
The situation raises questions about the financial management practices of Ganyani Entertainment, and the potential impact of these legal battles on the label's future. While Ganyani remains a respected figure in the house music scene, the taxman's relentless pursuit of him and his business could cast a shadow over his legacy and financial stability.
