Court Authorises SARS to Sell R35m Properties Linked to MaMkhize

Durban High Court Authorizes Sale of Shauwn Mkhize Properties

The Durban High Court has authorized the sale of five properties linked to businesswoman Shauwn “MaMkhize” Mkhize, as the mounting maintenance and private security costs incurred by the Southational Revenue Service reached nearly R200,000 a month, IOL News reported. Judge Jacqueline Henriques ruled that the properties in Sandown, Johannesburg, can be sold before a separate legal action determines whether the tax authority is entitled to execute against them. The proceeds must be held in a trust account until the ownership dispute is resolved.

Mounting Maintenance and Security Costs Undermine Preservation Order

Court papers show that the South African Revenue Service was paying R188,261.90 a month for private security at the Sandown compound, alongside R97,922.30 every six months for insurance. Judge Henriques noted that the properties were deteriorating since a preservation order was granted in November 2024, with a valuer reporting damp damage and poor maintenance. Outstanding municipal charges reached R1.79 million, and the City of Johannesburg issued a contravention notice after discovering unauthorized improvements built on four of the properties without approved plans.

Valuation and Ownership of the Sandown Compound

The five properties function as a single compound with a combined market value of R35 million and a forced-sale value of R24.5 million. Four properties are registered in the name of Yaron Peretz, while the fifth belongs to 22 Aston Investment (Pty) Ltd. On a balance of probabilities, Judge Henriques found that the tax authority laid sufficient groundwork to show that Mkhize is the beneficial owner. Evidence included payments by Mkhize and Zikhulise Group toward most of the purchase price, alongside testimony that all negotiations were conducted through Mkhize.

Tax Liabilities and Dismissal of Residence Objections

Mkhize owes the South African Revenue Service R13.3 million in personal income tax and is personally liable for the R112.5 million owed by Zikhulise Group, where she serves as a trustee and beneficiary. The tax authority has already recovered R6.1 million through auctions of cars, designer bags, and other movable assets seized from the properties. Judge Henriques dismissed objections from Mkhize and her son, Andile Mpisane, who argued that the sale would deprive them of their primary residence. The court found that Mpisane’s court papers listed his address as a property in La Lucia, and Mkhize had at least seven other properties available for alternative accommodation.

Legal Proceedings and Next Steps

Judge Henriques rejected arguments that the sale would amount to an arbitrary deprivation of property or pre-empt future proceedings, finding that commercial interests and deteriorating conditions justified urgent intervention. The appointed curator was authorized to proceed with the sale, and the South African Revenue Service has one month to institute a separate action to determine entitlement to the proceeds held in the trust account. Mkhize, Mpisane, 22 Aston Investment, and 56 Adrianne Street (Pty) Ltd were ordered to pay the costs of the application jointly and severally.

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