Power FM says it has entered into an arrangement with Sars.
The long arm of the law has reached out to Power FM in the form of the South African Revenue Service (Sars).
The commercial talk radio station based in Gauteng has found itself in hot water with the taxman for unpaid taxes amounting to millions.
In South Africa, it is a criminal offence under the Tax Administration Act for a company to knowingly fail to submit tax returns or pay taxes owed. Offenders can face hefty fines, penalties and even imprisonment for serious violations.
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Power FM owes Sars
Media reports have suggested that the tax agency is threatening to attach the radio station’s assets and sell them should it fail to settle the tax bill within the stipulated time. However, Power FM’s representative says the company’s assets are not at risk at all.
Tshifhiwa Mulaudzi, managing director of MSG Afrika confirmed to The Citizen the radio station owes money to Sars. “We confirm that there are outstanding amounts due to Sars and a letter of demand was issued by the revenue service,” he said.
“We further confirm a payment arrangement with Sars is in place. The company’s assets are not at risk at all.”
MSG Afrika Investment Holdings is the parent company of Power FM, owned by businessman Given Mkhari.
Amount owed by Power FM unclear
Mulaudzi did not confirm how much the radio station owes and for which taxes. Same with the tax agency.
In response to The Citizen’s inquiry, Sars spokesperson Siphithi Sibeko said: “SARS is precluded by Chapter 3 of the Tax Administration Act 38 of 2011 from discussing confidential taxpayer information.”
While both Mulaudzi and Sibeko were reluctant to confirm or deny the amount owed, an article in Daily Sun claimed that the radio station’s tax bill amounts to R3.5 million.
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Taxes owed
It is alleged that Power FM owes more than R2.7 million in unpaid Pay As You Earn (PAYE). The amount ballooned to R3 million with penalties and interest.
The Gauteng-based radio station also owes the tax agency R132 000 in unpaid Unemployment Insurance Fund (UIF) payments. This ballooned to just under R150 000 after penalties and interest.
The station also owes R126 000 in unpaid Skills Development Levy (SDL) fees and this increased to over R140 000 after penalties and interest were added.
According to the document reportedly seen by Daily Sun, Power FM also owes more than R235 000 in unpaid value-added-tax (VAT), which increased to R241 000 after penalties and interest.
Letter of demand and default judgment
The article further suggests the taxman is gearing up to deliver on its threat of attaching Power FM assets as it has obtained a default judgment against the radio station and has already blacklisted it for allegedly dodging taxes.
The judgment follows after the tax agency delivered a letter of demand on 18 July 2025. Allegedly, the letter stipulates that Power FM can either settle its tax bill or enter into a payment arrangement with the agency. The radio station was given 10 days to do so.
The tax agency further warned that failure to comply could result in legal action, including the attachment of assets and auctioning of the assets.
“Failure to make full payment or use the above remedies may result in the following actions, among others: Sars may appoint any third party who currently or in the future owes you money or holds on your behalf to settle your tax debt,” reads the letter.
“A civil judgment may be entered against you, in which case a warrant of execution may be issued for the sheriff of the court to attach and sell your assets.”
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