SARS threatens another black businessman

The South African Revenue Service (SARS) has reportedly intensified its legal battle with businessman and football club owner Siviwe Mpengesi, threatening to seize assets linked to his business interests over an alleged R53 million tax debt.

According to reports, the potential enforcement action marks a significant escalation in the dispute, with SARS moving beyond routine compliance notices to formal asset seizure warnings. This suggests that previous efforts to resolve the outstanding liability may have been unsuccessful.

Mpengesi is widely known as the owner of Chippa United F.C., which competes in South Africa's top-flight football league. The reported tax demand is said to stem from unfiled returns and unpaid assessments dating back several years, although specific details surrounding the nature of the dispute have not been publicly disclosed.

If implemented, the seizure of assets valued at tens of millions of rand could have significant implications, potentially affecting not only Mpengesi's business portfolio but also employees, suppliers and other stakeholders connected to his various enterprises.

Tax specialists note that asset seizure is among the most powerful enforcement mechanisms available to SARS when substantial liabilities remain unresolved.

Mpengesi and his legal representatives have not yet publicly responded to the reported enforcement threat. It remains unclear whether the matter will proceed to court or be resolved through negotiations with the revenue authority.