Makhadzi in Legal Woes Again For Reducing Her Tax

Makhadzi, the acclaimed singer renowned for her global hits, is facing legal action from tax consultancy firm STT Group Holding.

The firm alleges that the award-winning artist has not paid the agreed-upon success fee for their role in reducing her substantial tax bill by 60%.

Makhadzi recently encountered a daunting R6.6 million tax bill from the South African Revenue Services (SARS). However, with the assistance of STT Group Holding, she successfully contested the figures, resulting in a significant reduction of 60%.

Despite the apparent positive outcome, a dispute has arisen between the 27-year-old and STT. The firm claims that, contrary to their agreement, Makhadzi has not paid their compromise success fee, amounting to R400,000 or 10% of the reduced debt.

Court documents submitted by STT reveal that they entered into a verbal agreement with Makhadzi, also known as Ndivhudzannyi Decorate Ralivhona, in August 2023. This agreement facilitated a “compromise” with SARS, allowing Makhadzi to settle the debt for a reduced sum of R2.75 million.

The documents further outline that Makhadzi committed to paying STT a success fee of over R385,000. However, she has only made partial payments of R100,000 and R50,000, leaving an outstanding balance of R293,013.

STT asserts that despite multiple attempts, including a formal letter of demand, Makhadzi has not responded to their efforts to collect the remaining payment. As a result, STT Group Holding has filed legal papers in the Joburg High Court, seeking a judgment against her for the unpaid amount.

Despite attempts by Sunday World to obtain Makhadzi’s comments on the matter, she has not responded to calls or text messages. This ongoing dispute raises uncertainties about the resolution of Makhadzi’s debt settlement and awaits the court’s decision.