Montana accuses SARS of unlawful tactics in R55 million tax dispute
The bitter and complex dispute between former PRASA CEO Lucky Montana and the South African Revenue Service (SARS) has intensified this week, with both parties trading sharp accusations over an alleged tax liability that SARS claims totals R55 million.
At a Monday media briefing held at OR Tambo International Airport, Montana dismissed SARS’ assessments outright, insisting he only owes R8 million in outstanding taxes — a fraction of the amount SARS claims he owes.
The former transport executive described SARS’ tactics as “unlawful” and accused the agency of abusing its power.
“He should be ashamed of himself,” Montana said, referring to SARS Commissioner Edward Kieswetter, blasting a rogue tax authority that pushes questionable claims against ordinary taxpayers like himself.
Montana’s dispute with SARS dates back over a decade and includes contested charges related to vehicle settlements, property sales, and alleged undocumented income.
“They’re even taxing properties I sold ten years ago. They don’t even know where I live because they’re a rogue unit. How stupid can you be? I never approached SARS with an offer,” Montana said.
Breaking down SARS’ methodology, Montana alleged that the agency inflated the numbers by including dealership settlements as his income and by miscalculating Capital Gains Tax on a Johannesburg property sold for R6.8 million, ignoring valid bond cancellations, development costs, and primary residence exemptions.
He argued about the alleged undocumented income, stating that SARS alleged millions were deposited in Montana’s accounts without explanation. He claims he rejects these allegations and will address them through the proper legal channels.
Montana also challenged the legitimacy of SARS’ legal claims, demanding formal court orders to back “default judgments” that SARS submitted as certified statements rather than proper rulings.
“I asked SARS to provide the default judgment and competent court order as per the law — they have none,” he said. “There’s no relevant court ruling against me, only a stamped certified statement masquerading as a judgment.”
Montana further revealed a criminal case he opened against Kieswetter and a SARS official in Tshwane last week for alleged fraud, abuse of power, and defeating the ends of justice.
He denounced SARS’ aggressive enforcement tactics, including break-ins by sheriffs and police, labeling them intimidation designed to bully him into submission.
Describing the agency’s modus operandi as a “Buti Buti scheme” — a South African colloquialism meaning a buddy system favoring insiders — Montana accused SARS of privileging powerful corporations through secretive settlement deals while ordinary taxpayers suffer.
“These are not ordinary people we’re dealing with,” Montana said, urging Parliament to strengthen oversight of SARS’ settlement processes.
SARS held its own briefing on Saturday, outlining Montana’s alleged non-compliance, including multiple years where he failed to submit tax returns or required documentation despite numerous extensions.
The tax authority defended its R55 million claim as “lawful and based on audit findings that don’t lie,” stating it will use all legal avenues to recover the debt.
“Due to Montana’s non-payment of his tax debts… SARS launched an application for the sequestration of Mr Montana’s estate on 22 May 2023,” said SARS.
“The application was premised on Mr Montana’s outstanding tax debt, which remained unpaid.
“Mr Montana’s allegation of SARS ‘fraudulently doctoring a fake court judgment to justify a hefty tax bill’ is false.”
Montana vowed to escalate his defense, including a potential R50 million damages claim for harm caused by SARS’ dispute handling.
“I’m mobilising South Africans to understand how this affects many others. This is not just my fight,” he said.
“I refuse to accept an unlawful process. I don’t owe SARS and won’t be bullied into submission even if I lose everything.”
thabo.makwakwa@inl.co.za
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