In Focus

Stagwell TV South Africa: Fake Taxes and Desperate Excuses Reveal a Scam on the Brink

Stagwell TV South Africa (stagwelltv88.com) continues to unravel, with its latest attempts to buy time and extract more money from victims through fabricated tax obligations and excuses for delayed payments.

As the scammers approach the supposed rollout of their much-hyped “AI Smart Withdrawals” system, set for 16 January 2025, their tactics have grown increasingly desperate, exposing glaring inconsistencies and outright lies in their operation.

The Questionable Registration Claims

In a previous article, I highlighted that Stagwell TV claimed to be a registered entity. However, even at the time, I raised significant misgivings about the legitimacy of this registration. Despite the appearance of legitimacy, this registration has done little to mask the platform’s fraudulent nature.

While scammers often use registration as a veneer of credibility, it is important to note that being registered does not absolve them of the legal requirements associated with their supposed business activities.

Registration as a legitimate employer, for example, would necessitate proper tax compliance, UIF contributions, and adherence to South African labour laws—none of which are present here.

Moreover, the platform has never registered with the Financial Sector Conduct Authority (FSCA), meaning it is not authorised to handle deposits or operate a financial scheme.

A Predictable Pattern of Collapse

The latest developments at Stagwell TV follow a well-worn playbook of scams nearing their inevitable collapse. Scammers often operate in distinct phases to prolong the scheme, extract maximum funds, and deflect suspicion. Stagwell TV’s actions fit this pattern perfectly:

  1. Withdrawal Problems
    The first visible sign of trouble with any scam is withdrawal issues. Stagwell TV’s “pending” withdrawals are a classic red flag, as the platform’s cash flow begins to dry up.
  2. Ruse Compliance
    Scams often attempt to disguise their issues as compliance with regulatory or technical upgrades. Stagwell TV introduced the “AI Smart Withdrawals” narrative, a vague and meaningless concept designed to reassure victims while delaying payouts.
  3. First Heist (Birthday Celebration)
    To extract additional funds, scammers often fabricate milestones or celebrations. Stagwell TV’s fabricated “1st anniversary celebration” encouraged deposits with promises of rewards and bonuses, all while masking the platform’s financial instability.
  4. Delay and Diversion (AI Withdrawals)
    The scammers introduced the 16 January 2025 rollout of “AI Smart Withdrawals” as a diversionary tactic, promising to resolve all issues while continuing to extract deposits. This stage is designed to keep victims hopeful and engaged.
  5. Second Heist (Tax Compliance)
    Fabricated tax demands, like those announced on 15 January 2025, serve as a second heist. By claiming SARS compliance, Stagwell TV exploits victims further, coercing them into paying fabricated taxes to access their funds.
  6. Potential Final Heist and Collapse
    Before the ultimate collapse, scammers often attempt a final push to extract as much money as possible, typically introducing new fees, compliance steps, or fabricated emergencies. Once the cash flow dries up completely, the platform collapses, leaving victims with no recourse.

Also read:

Fabricated Tax Obligations: A Clear Red Flag

In its latest move, Stagwell TV issued a fabricated “Tax Payment Notice” on 15 January 2025, claiming that all “employees” must pay personal income tax in compliance with SARS regulations. However, this announcement is riddled with contradictions and raises numerous questions:

  1. Tax Cannot Be Collected Retroactively
    The platform previously disbursed funds to early adopters—described as “employees,” but in reality, evangelists for propagating the scam—without withholding taxes. Employers in South Africa are legally required to deduct PAYE (Pay-As-You-Earn) taxes at the time of payment. Tax collection cannot be applied retroactively, as Stagwell TV is now attempting to do.
  2. Where Are the UIF Contributions?
    PAYE and UIF (Unemployment Insurance Fund) contributions go hand in hand. Yet, there is no evidence that Stagwell TV has ever made UIF contributions on behalf of its so-called employees. This alone undermines their claims of being a legitimate employer.
  3. Absence of Payslips
    Legitimate employers are required to provide payslips to employees, clearly stipulating deductions for PAYE, UIF, and other contributions. Stagwell TV’s operation has never provided such documentation, further exposing the scam.
  4. Hamfisted Attempts to Evade FSCA Registration
    By framing users as “employees,” the scammers are attempting to bypass FSCA registration requirements for handling deposits. However, this approach is not only misleading but also creates multiple legal liabilities for the scammers. Their so-called “employment model” lacks even the most basic hallmarks of legitimate employment and instead serves as a thinly veiled ruse to perpetuate the scam.

A Fraudulent Tactic to Sink Victims Deeper into Financial Woes

The timing of these fabricated tax demands and payment delays is particularly cruel. January is a notoriously difficult month for many South Africans, with financial obligations such as school fees and back-to-work expenses piling up after the festive season. By exploiting this vulnerable period, Stagwell TV’s operators are sinking their victims even deeper into financial distress.

The fabricated tax demands range from R250 for K1-level “employees” to an outrageous R126,000 for K8-level “employees.” These amounts bear no resemblance to legitimate income tax calculations and are clearly designed to extract as much money as possible before the scam collapses entirely.

Glaringly Obvious Criminal Liabilities

This hamfisted attempt to portray legitimacy only amplifies the criminal liabilities for the scammers. By claiming to collect taxes on behalf of SARS, the scammers are not only defrauding their victims but also implicating themselves in tax-related fraud.

Furthermore, their continued operation without FSCA registration and their failure to adhere to labour laws expose them to additional legal consequences.

Also read: Stagwell TV South Africa: Fake Tax Demands Escalate as Platform Freezes Users and Chaos Ensues

The Final Verdict

Stagwell TV South Africa’s latest antics—fabricated tax demands, vague promises of AI-driven payment systems, and mounting payment delays—underscore its desperation as the scam edges closer to collapse.

The platform’s continued operation is a threat to its victims, who are being pushed into even greater financial hardship during an already challenging time of year.

For those still engaging with this platform, the message is clear: disengage immediately, document all losses, and warn others to avoid falling victim.

Stagwell TV is a textbook scam, and its downfall is inevitable. The only question is how many more people will suffer before it collapses entirely.

This pattern of collapse is unmistakable. The fake compliance efforts, staged celebrations, and fabricated tax demands all serve to extract as much money as possible from victims before the platform vanishes.

Stagwell TV is not just a scam—it is a cruel exploitation of trust and vulnerability, leaving its victims financially devastated.

Also read: 

19 Comments

  1. Lara says:

    I will try and share this article to all the contacts in the stagwell groups, but they don’t want to hear anything negative about stagwell. So many people put All their savings, every last cent into the stagwell “investments” StagwellSA it is devastating!

  2. Steven Smit says:

    Good day I’m also a victim of the stagwell tv group system. I didn’t invest (Gamble) that much. And the last nail in the coffin was this R1600 tax payment. Wham R4300 and R1600. R5900 gone. My total withdrawal supposed to be on Thursday next week. R530000. We were a lot of family members that withdraw and received a salary and invest again and again. There is so much to say but yah. I’m Steven and has been scammed

    • .MC says:

      Did you pay the K3 tax snd what did it say then

      • Steven Smit says:

        Good day. Yes I did. I spoke to Catherine and she said to me my platform is save. I can go in I watched my movies this morning and I can go in everywhere

    • Demi says:

      Me and my husband lost R8K in today

  3. Dean says:

    My husband is a victim he lost over R32 000 of his own money that he put in money paid out and he invested again. We were on the edge to withdraw R90 000 when they decided to fail the payment.
    We are left devastated!

  4. .MC says:

    I also lost 7000 and my son 15000 He is only 23 and saw it as an opportunity to get a headstart in life

  5. Thato says:

    Am a victim with 6 family members and my husband too am left shattered cause the money gone is alot. Is all hope lost?

  6. Zee says:

    Thanks for the advice, I whish I saw it before I invested, I am usually a paranoid person but I don’t know how I fell for this scam, I did my investigations after I had put down my R13k, encouraged my son to register with R3k for level 3. I could then seen many red flags, I.e them showing us screenshorts of capitec money into “savings account” whilst capitec bank no longer has it but has immigrated to “main account “. I have leant my lessons. The tax payments was the last straw.

  7. Shurika says:

    I withdraw money last year and it showed in my bank. So the second moth when I was supposed to withdraw I invested the money. So this was in December. It’s January 16th and me and my husband was supposed to cash out 2 of our investment today. I payed the tax money before I know what was going on. It’s after 2 that I’m writhing this and my account is still not working. Tried to contact the manager but she don’t come back to me. I don’t word and that money was supposed to be my food on the table. What must I tell my 2 year old boy if he is hungry

  8. Machtilt says:

    I did this for my mother who is 80 years old. Tried to make her last years a bit more easy.
    These people are heartless. A lot of people relied on them and they lied to us.

  9. Akhona says:

    Big scammers and people don’t want to listen and they are paying fake tax

  10. Maria says:

    I only saw the red flags after l had already invested in R8000. It was money for rent, school fees and food. But l am only left with zero balance, heartache and no food. Stagwell is heartless. I don’t even have money to buy diapers for my disabled child.

  11. Veronica Thandi Tshabalala says:

    I was a victim, too, and when I saw this article for the first time, I thought it was a lie. I joined the business in August, and I recruited many people, then they told me that I qualify to open an office, and must register a company so that they may be fully compliant in South Africa. I thought this was an opportunity to change my life and everyone else around me. My family invested so much money into this. These people are so heartless because they fronted using my name, and now I am left in a mess. I wish these people could be caught and dealt with. They have really messed families up and tanished my name in the community and put my family in danger. I have availed myself to provide any information even though it’s not much but I am willing.

    I so wish We all took caution after seeing this article for the first.

  12. Anonymous says:

    😭I was told at the start of December by a close friend she showed me how much she will withdraw for new year which was 90k plus I knew ✈️it was time I waited until after new year …on the 5th I decided to take the risk mhmm I was too late not even one withdrawal 🤭

    • D'Nele Venter says:

      Me and my husband aswell.. We only lost R5000 in total. Also with no withdrawals..

  13. Masabata says:

    I have joined Stagwelltv with the money that was for the registration for for a child hoping to get enough for other kids.

    Sad that they don’t opt for refund us instant they want more from us before withdraw now no food next

  14. Demi says:

    Me and my husband lost R8K in total

  15. Anonymous says:

    I NEVER fall for these types of things, but because someone else was convinced by a friend, I was too. I lost R18k – Now in credit card debt. Hard lesson to learn. People need to be made aware!

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