SARS Rejects Lucky Montana’s R5.4 Million Offer To Settle R55 Million Tax Debt

The South African Revenue Service (SARS) has revealed that former Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana offered R5.4 million to settle the R55 million the agency claims he owes in unpaid taxes.

SARS said on Saturday that it is “untenable” for Montana to attack the organisation publicly while simultaneously trying to resolve his outstanding debt.

According to SARS spokesperson Siphithi Sibeko, “A prerequisite in terms of the Tax Administration Act for SARS to consider a compromise offer is that the tax debt may not be disputed. In other words, the taxpayer must accept that the tax is due and payable.”

The statement came after SARS warned that it would disclose Montana’s confidential tax details unless he withdrew the “false claims” he made earlier in the week.

Lucky Montana Accuses SARS of Misconduct

In an interview with reporters, Montana claimed that SARS had “fraudulently doctored a fake court judgment to justify a hefty tax bill.” He further accused the tax authority of “maladministration, abuse of power and a politically motivated witch hunt.”

The long-standing dispute dates back to November 2020, when SARS initiated an audit against Montana for failing to submit his income tax returns for the 2017, 2018, and 2019 financial years.

Sibeko added that the audit revealed Montana had allegedly under-declared income from several sources, amounting to tax evasion.

YOU MAY ALSO LIKE: “He Didn’t Talk Too Much” — Bheki Cele Remembers Mthethwa’s Crime-Fighting Legacy

SARS confirmed that it intends to continue with sequestration proceedings against Montana should the compromise process fail.

“Mr Montana has still not filed his answering affidavit in the sequestration application. SARS’s stated position against him therefore stands uncontested,” Sibeko said.

He also noted that the agency had referred the matter to the police, asking them to investigate “the abuse of resources and complaints procedures by persons who seek to distract, divert and create unnecessary drama.”

---

For More, Follow SurgeZirc SA On Facebook, X,  Instagram and Bluesky