By Lehlohonolo Lehana.
Former CEO of Passenger Rail Agency of South Africa (PRASA), now an MP for the uMkhonto weSizwe (MK) Party, Lucky Montana owes the SA Revenue Service (SARS) R55 133 282.94.
SARS has been briefing the media on Montana tax affairs.
In terms of section 67(5) of the Tax Administration Act, SARS is empowered to publicly disclose taxpayer information where it is necessary to counteract false statements that may undermine the integrity and public confidence in the tax system.
This week, Montana charged that he had opened a fraud case against SARS commissioner Edward Kieswetter.
He claimed they cooked up a bogus court judgment and order for the purpose of nailing him.
After Montana made the claim, Sars dared him to withdraw the claims. It said failure will see him face his tax information being flaunted in public for all to see.
Montana fired back. He dared Sars and its boss to go ahead with airing his tax information for the public.
SARS spokesperson, Siphithi Sibeko told reporters on Saturday, that Montana failed to submit his income tax returns in respect of the 2017, 2018 and 2019 years of assessment. SARS initiated an audit in respect of his 2009 to 2019 years of assessment.
According to Sibeko, Montana was formally notified of this on 5 November 2020.
Montana requested SARS to provide information for the audit by no later than 4 December 2020, and SARS granted him, an extension to submit the required relevant material and information by 1 February 2021. He then failed to deliver the requested documentation, which Sibeko says it is a contravention of the law.
Montana was then informed that SARS intended to raise additional income tax assessments to the value of approximately R15,5 million in respect of his 2009 to 2019 years of assessment. (Capital only).
According to Sibeko, “SARS found that Montana had unlawfully evaded his tax liability by under-declaring taxable income he received from various sources over the relevant periods of audit.”
“Due to Montana’s non-payment of his tax debts, and the aspect in terms of the Insolvency Act 24 of 1936 (the Insolvency Act) being satisfied, SARS launched an application for the sequestration of Montana’s estate on 22 May 2023, added Sibeko.
“Montana has still not filed his answering affidavit in the sequestration application. SARS’s stated position against him therefore stands uncontested, explained Sibeko.
Sibeko says Montana approached SARS in August this year with a “compromise” offer of R5.4 million for his debt.
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, said Sibeko.
“It is therefore untenable for Montana to publicly attack SARS and its officials, whilst simultaneously seeking a compromise of a tax debt he accepts.”
Montana, who served as PRASA boss from 2010 to 2015, has been embroiled in various controversies over the years, including allegations tied to the State Capture era.