Documents from the court indicate that SARS first informed Maphorisa in July 2018 of its intention to perform an income tax audit due to unsubmitted returns.<\/p>\n
The agency sought various documents, including IRP5 and IT3 certificates, records of investment income, and bank statements.<\/p>\n
During a pre-trial discussion, Maphorisa reportedly stated that he filed his tax returns after the audit had commenced, mentioning that personal mental health issues contributed to the delays.<\/p>\n
Upon concluding the audit, SARS raised concerns regarding deposits made into Maphorisa’s FNB account, asserting that these should be considered part of his unreported income.<\/p>\n
In November 2018, SARS issued its findings, alleging that the artist had “intentionally evaded tax,” which resulted in a 200% penalty on the assessed amount.<\/p>\n
“The respondent has proven the facts relied upon to impose the USP (understatement penalties) at the rate of 200% on the basis that the appellant\u2019s conduct is correctly classified as intentional tax evasion,” stated the court documents.<\/p>\n
SARS finalized the audit in December 2018, utilizing available bank information after Maphorisa allegedly did not respond to its findings. This resulted in assessments exceeding R3.3 million.<\/p>\n
The artist subsequently filed formal objections in 2022, contesting the assessments for the tax years 2015 to 2017.<\/p>\n
However, these objections were rejected by SARS, leading Maphorisa to appeal in September 2022.<\/p>\n
In his appeal, he contended that SARS had miscalculated his tax obligations and overlooked allowable expense deductions.<\/p>\n
Furthermore, he argued that “the imposition of the USP by SARS has not been reasonable.”<\/p>\n
The case is currently under review by the Tax Court, where Maphorisa aims to overturn the significant tax bill.<\/p>\n
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