Court Orders Sale of Five Luxury Sandown Properties Linked to Shauwn Mkhize

The Durban High Court has authorised the sale of five luxury residential properties in Sandown, Johannesburg, linked to prominent businesswoman Shauwn Mkhize and her family, in a legal development involving substantial outstanding tax liabilities claimed by the South African Revenue Service (Sars).

In an order handed down on Monday, the court directed a curator bonis to sell the properties and deposit the full proceeds into an interest-bearing trust account. The money will remain under the curator’s control while Sars pursues legal action to establish whether the funds can be used to settle the outstanding tax debts associated with Mkhize and the Zikhulise Group.

Presiding over Sars’ urgent application, Judge Jacqueline Henriques also granted the revenue service one month from the date of the order to institute proceedings seeking a declaration that the properties, or the money generated from their sale, could be executed against to recover the alleged tax liabilities.

The ruling follows a preservation order granted on November 21, 2024, under the Tax Administration Act. Sars subsequently sought permission to convert the properties into cash, arguing that the escalating costs of maintaining them were placing their value at risk.

According to the revenue service, expenses associated with property maintenance, accumulating municipal arrears and extensive security arrangements had become substantial. Henriques accepted that the financial burden of preserving the properties, together with their deterioration, justified allowing the assets to be sold rather than risk further erosion of their value.

The financial figures presented by Sars indicate the scale of the dispute. As of September 19, 2025, Mkhize allegedly owed R13.3 million in personal income tax. Sars also cited her personal liability for the Zikhulise Group’s tax indebtedness, including interest, amounting to R112.5 million.

The combined figures total R125.8 million, although the court’s latest order does not itself establish that the proceeds from the property sales will fully satisfy the amounts claimed.

The decision represents a significant step in Sars’ efforts to recover outstanding revenue while preserving the financial value of assets connected to the dispute. By directing the proceeds into an interest-bearing account, the court has provided a mechanism for safeguarding the money until the next stage of litigation.

Importantly, the sale does not automatically transfer the proceeds to Sars. The revenue service must institute the required legal proceedings within the stipulated period and obtain the necessary relief before the funds can be applied towards the outstanding tax liabilities.

The outcome of those proceedings will determine whether the proceeds can ultimately be used to recover the debts claimed by Sars.

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