Johannesburg – In a dramatic escalation of a long-running tax dispute, the South African Revenue Service (Sars) conducted a major raid on multiple properties belonging to businesswoman Shauwn Mkhize, seizing assets worth an estimated R22 million and uncovering an undeclared arms cache.
The Durban High Court-sanctioned search warrant authorised Sars officials to seize a wide range of materials from properties in Sandton, Gauteng; La Lucia, Durban; Pietermaritzburg; Scottburgh; and Reservoir Hills, all in KwaZulu-Natal. The warrant detailed a comprehensive search for evidence related to Mkhize’s tax affairs from the 2017 tax year to the present, covering Value Added Tax (VAT) and employees’ tax.
The warrant specifically allowed Sars access to a vast array of documentation and digital data. This included written records, sound and pictorial recordings, electronic messages (WhatsApp messages, screenshots, photos, videos, images, and SMS messages from various devices), computer files, disks, programs, and data stored on diverse digital media, including CDs, DVDs, flash drives, servers, cell phones, smartphones, tablets, external hard drives, and cloud storage.
Furthermore, the warrant permitted the seizure of various financial documents, including tax invoices, delivery notes, stock records, customer invoices, receipts, ledgers, credit notes, and purchase invoices.
These vehicles have been impounded by a curator pending the resolution of the tax inquiry. Sars is demanding R37 million from Mkhize, and the vehicles are slated for auction if the debt remains unpaid.
The warrant also sought access to electronic communications from Mkhize's son, Andile Mpisani, and her associates. Interestingly, a search of Royal AM’s company registration record revealed that Mkhize and Mpisani had resigned from their positions in June 2023, potentially removing the club from Sars’ immediate radar. Shamish Sadab is now listed as the club’s director.
A startling discovery during the raid was an arms cache, comprising various pistols, rifles, and ammunition. Sources close to the investigation indicate that the firearms belong to a former presidential protection services officer who now operates a taxi business and a security company, VVIP Protection and VIP Security, in the Durban area.
At the time of the raid, the company’s firearm licences and Private Security Industry Regulatory Authority (PSIRA) permit had expired. The seized firearms are undergoing ballistic testing to determine any possible connection to the April shooting of Advocate Coreth Naudé.
Advocate Naudé, who represented Sars in the Mkhize tax inquiry, survived an assassination attempt in Durban. She was shot three times in the upper body, neck, and face while arriving at a hotel near the Gateway shopping centre. Her involvement in scrutinising Mkhize’s business affairs is believed to be the motive behind the attack.
Sars Commissioner Edward Kieswetter commented on the raid, stating that the court’s granting of the search warrant was "a crucial step in Sars’ strategic objective to make it increasingly difficult and costly for taxpayers to wilfully and intentionally engage in criminal activity."
He highlighted Sars’ ongoing efforts to ensure compliance within the construction industry and emphasised the collaboration with police and the Hawks in upholding the integrity of the tax system. Kieswetter stressed that Sars would continue its mandate without fear or favour, asserting that "No one is above the law."
He previously condemned the attack on Sars officials and the attempt on Naudé’s life. The investigation into Mkhize’s tax affairs and the related incidents continues.
