Montana set to respond to SARS in public spat over his R55m tax debt

Former Passenger Rail Agency of South Africa (PRASA) CEO, Lucky Montana, is set to again respond to the South African Revenue Service (SARS) on Monday in a tit-for-tat spat over an unpaid tax debt of R55 million.

This follows an unprecedented move by SARS to disclose Montana’s confidential tax affairs over the weekend.

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Part of the dispute involves undeclared income, capital gains from the sale of two properties and the purchase of luxury cars.

The tax authority made good on its earlier threats to go public with Montana’s non-compliance after the MK Party MP accused SARS of doctoring a court judgment on which a sequestration application was based.

A sequestration application allows a court-appointed trustee to temporarily take control of a person’s assets until they have paid money that is owed.

After Montana failed to retract accusations of maladministration and a witch hunt by SARS against him, the tax authority’s spokesperson, Siphithi Sibeko, had this to say: "It is untenable for Mr Montana to publicly attack SARS and its officials, whilst simultaneously seeking a compromise of a tax debt he accepts. Dependent on the compromise process Mr Montana initiated and the outcome thereof, SARS intends to set the sequestration application down for hearing in the high court. Mr Montana has still not filed his answering affidavit in the sequestration application. SARS's stated position against him therefore stands uncontested."