Taxing times for MaMkhize: Royal AM slapped with asset attachment order

Royal AM, businesswoman Shauwn “MaMkhize” Mkhize’s vibrant DStv Premiership team, is facing mounting financial challenges as they grapple with a court order to seize their movable assets in a bid to recover a substantial R37 million owed to Sars.

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The KwaZulu-Natal High Court has issued this order after the club allegedly evaded tax payments and disregarded a previous court directive. 

Royal AM, already embroiled in another financial dispute regarding Samir Nurkovic’s payment, now finds themselves in an even deeper debt quagmire.

This development underscores the urgency of resolving their financial issues, as the consequences of non-compliance could have severe implications for the club’s operations and reputation in the league.

To gain a clearer insight into the implications of the letter, Phakaaathi engaged a legal expert who also serves as a players’ agent. 

The legal expert, wishing to remain anonymous, offered their perspective on the matter. 

“What it means is that, Royal AM first failed to make a payment of  R37-million to Sars after the order by the High Court,” says the lawyer.

“And because they failed to comply with court order, Sars have now secured a warrant of execution to attach the assets of the club like computers and busses at that address (on the letter). 

“Interest will start to run from November 1,” added the lawyer. So what’s the worst case scenario in this matter? 

“Worse case scenario: If the assets don’t amount to the R37-milliom that is owed, they will next attach the bank accounts of the club. 

“This means  whatever money that gets paid into their account, Sars will take it. That includes the PSL grant.

“If they still don’t get their money, Sars will then target the directors of the company and if they also fail to pay off the tax debt, Sars will liquidate the company.” 

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The club could not be reached at the time of publishing to get their perspective on the matter.