SARS does not play when it comes to tax and revenue collection. Just ask the likes of Julius Malema, Somizi Mhlongo, Oscar Pistorius and Tbo Touch… Which is what rapper AKA should have done as he now reportedly owes the South African Revenue Service at least R2 Million.
This information came to light when AKA, whose real name is Kiernan Forbes, filed legal papers after his former manager, Raphael Benza, dragged him to court. Benza claims that Forbes owes his record company, Vth Season, at least R650 000, which was due by the end of November.
Both parties allegedly reached an agreement back in July as part of the dissolution of Forbes’ contract with the record company. He has since failed to meet the agreement and is now claiming it is because he owes SARS.
According to City Press, Forbes’ lawyer, Oupa Baloyi blamed Benza for Forbes’ tax woes because the funds owing had accumulated during the financial years in which Forbes was signed to Vth Season.
“He [Benza] created this. As his manager, it was his responsibility to advise him about all financial and tax issues as part of his management duties, in accordance with a management agreement,” said Baloyi.
Baloyi also explained how, at the time, Benza did not pay Forbes 80% of his earnings, as per their management agreement. Instead, he paid the rapper a specific amount each month, like an employee instead of an independent contractor reports City Press.
Related: AKA speaks out against Vth Season
Benza denied being responsible for this, stating “I advised Kiernan regularly to pay SARS and he told me he was paying. I never asked for proof. I trusted him. He is a grown man,” before adding that the rapper was focused mainly on accumulating assets during this time.
Assets which included two, R2 Million cars and two luxury homes, one for himself and one for his mother. The rapper was also recently gifted with a R370,000 time piece by his business partner at their company’s year-end dinner this past weekend.