Former Head of the Passenger Rail Agency of South Africa (PRASA) and current MP, Lucky Montana, has boldly declared his intent to hold the South African Revenue Service (SARS) accountable for what he describes as a “rotten system.”
During a media briefing in Ekurhuleni on Monday, Montana addressed the allegations from SARS that he allegedly owes a staggering R55 million in tax debt, a claim he categorically disputes.
Montana's fiery remarks come in response to SARS briefing held over the weekend, where the agency laid bare its allegations against him.
"I am not on trial," he insisted. "SARS knows that it is its rotten system that is on trial. I'm at peace and know that I do not owe SARS a cent."
His defiance raises questions about the legitimacy of the tax agency's practices, particularly regarding the interest and penalties he claims inflate his alleged debt.
According to SARS, between 2009 and 2019, several undeclared income deposits were made into Montana's bank accounts during his tenure at PRASA.
However, Montana contends that more than 80% of the R55 million cited includes excessive interest and penalties, rendering the figure exorbitant.
"Even loan sharks (amoshisa) in the streets don't charge those rates," he argued, comparing SARS's charges to those of street loan sharks.
With the tax agency asserting that he has a total liability of R55,133,282.94, Montana revealed he has proposed a limited offer of R5.4 million to settle what he claims is a much lower capital tax burden of around R8 million – a figure he is also contesting.
This ongoing dispute has brought him into direct conflict with SARS, which has characterised his public outcry against the agency as hypocritical, given his simultaneous negotiation for a debt settlement.
Siphithi Sibeko, SARS’s national spokesperson, stated, "It is untenable for Mr Montana to publicly attack SARS and its officials while simultaneously seeking a compromise on a tax debt he accepts."
This tense exchange escalated as Montana disclosed that he had opened a fraud case against SARS Commissioner Edward Kieswetter.
In response to Montana’s claims, SARS issued a warning, giving him 24 hours to withdraw his statements or face the release of his taxpayer information to counter his assertions.
The agency notes that its audit of Montana's tax returns began in November 2020, following his failure to submit returns for three assessment years.
It claims he was given multiple opportunities to comply, including a final demand after he requested an extension.
By July 2021, the audit concluded that Montana had unlawfully evaded his tax obligations over a decade by under-declaring taxable income.