Zwai Bala on his R3M tax bill: ‘I learnt the importance of paper trail’

Zwai Bala on his R3M tax bill: ‘I learnt the importance of paper trail’

- Zwai Bala recieved a R3 million bill from the tax man in 2006

- This was due to the failure of the trio to pay taxes between 1999 and 2005

- He is now a solo artist and has learnt his lesson when it comes to taxes and keeping financial records

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Receiving a R3 million tax bill would surely make you look at your spending. Zwai Bala has experienced exactly this and has relooked at the way he spends his money.

Zwai was not alone in this one. His bandmates Tokollo Tshabalala and Kabelo Mabalane, were notified in 2006 that there were problems with the tax man.

The complications were caused by the failure of the trio to pay taxes between 1999 and 2005, reported ZAlebs.

The revenue service stated that is was for money they had received from Sony BMG Music Entertainment, the SA Music Rights Organisation and Electro Mode Music South Africa.

During an interview Zwai said that SARS did not take action in the first year. Briefly.co.za learnt that the group carried on making money until they started an audit, checking accounts and calculating monies that had gone through accounts.

Once audit was done they were charged with outstanding income tax due.

The big mistakes they made was not one of them submitted tax returns. Zwai did admit that that was where they did not act very smartly.

Zwai had a lot of explaining to do. He had to prove that money he receive was not spent on personal use. He said that as a musician he uses his income on various things surrounding his career. He had to pay for travel etc.

All his spending had to be justified showing he did not spend on personal use.

The 42-year-old musician is now a solo artist. After this experience, Zwai is smarter and wiser and handles his money responsibly. He has learnt the importance of a paper trail and ensures he has all relevant documentation.

He does work with Artistic Practitioners and insists that before payment is made he receives and invoice.

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Learning from his mistakes, Zwai warns young artists not to make the mistakes he did. Highlighting the importance not to be casual where money is concerned.

He pleads to youngsters out there with nice voices to understand that they need to make money and most of all have a plan. It is not good wanted to make an album and appear on TV, but no concrete plans have been made.

They might get that call for the big gig and have no idea how to manage it. They are unprepared for all that lies ahead ending in them unable to make it a success.

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Source: Briefly.co.za

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