Mkhize Suffers Major Court Setback as Judge Authorises Sale of R35M Properties Amid Tax Debt Battle

South African businesswoman Shauwn Mkhize has suffered a significant legal setback after the Durban High Court dismissed objections to the proposed sale of five luxury properties linked to her in Sandown, Johannesburg, valued at approximately R35 million.

The ruling, delivered by Judge Jacqueline Henriques on Monday, 26 October 2026, authorises a curator bonis to sell the properties as the South African Revenue Service (SARS) intensifies its efforts to recover substantial outstanding tax liabilities associated with Mkhize and the Zikhulise Group.

According to the judgment, the five properties have an estimated combined market value of R35 million, although their collective forced-sale value is approximately R24.5 million.

The court’s decision marks another significant development in the ongoing tax dispute involving the businesswoman, whose financial affairs have attracted considerable public attention.

SARS approached the court seeking permission to convert the properties into cash, arguing that their continued preservation was becoming increasingly expensive and that their condition was deteriorating.

The revenue service highlighted mounting municipal charges, maintenance concerns, insurance premiums and security expenses as factors contributing to the erosion of the properties’ value.

Court documents indicate that security costs alone amounted to approximately R188,000 per month, with SARS covering these expenses while the assets remained under preservation.

The judgment also referred to outstanding municipal charges of approximately R1.8 million across four of the properties, based on statements available to SARS in October 2025.

The case is linked to significant outstanding tax liabilities. SARS previously indicated that Mkhize owed approximately R13.3 million in personal income tax, while her liability relating to the Zikhulise Group’s tax indebtedness, including interest, stood at approximately R112.5 million.

Together, these amounts bring the reported tax exposure to roughly R125.8 million.

However, the latest court order does not automatically transfer the proceeds from the property sales to SARS. Instead, the money must be held in an interest-bearing trust account while further legal proceedings determine whether the properties or their proceeds can lawfully be used to settle the outstanding tax obligations.

Judge Henriques found that the factual basis of SARS’s application had not been adequately challenged by the parties opposing the proposed sale.

The court consequently dismissed their objections and authorised the sale without setting a reserve price.

SARS must institute a separate legal action within one month to establish its entitlement to execute against the properties or the money generated from their sale.

The latest ruling represents a crucial step in the revenue service’s recovery efforts, although the final determination of how the proceeds may be applied remains subject to further court proceedings.

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