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Sunday, June 8, 2025
Cape Argus News

Lucky Montana fights back against SARS's asset attachment claim

Thabo Makwakwa|Published

Former Prasa CEO and Member of Parliament Lucky Montana challenges SARS over R46 million tax claim.

Image: David Ritchie/

Former Prasa CEO Lucky Montana has publicly challenged the SA Revenue Service’s (SARS) application to attach his assets, claiming the tax claim against him is unfounded and politically motivated.

The dispute revolves around an R46 million tax assessment SARS sought to recover from Montana.

The tax authority's application, filed in the Pretoria High Court, also seeks to declare Montana insolvent. 

SARS alleges that Montana owes this amount in taxes, penalties, and interest from assessments dating back over a decade. 

The case is currently before the court, and the proceedings are expected to shed light on the validity of SARS’s claims.

Montana, the former CEO of the Passenger Rail Agency of SA (Prasa), vehemently denies owing money to SARS. 

In a detailed statement issued before Tuesday's court hearing, Montana described the case as a “personal attack” aimed at humiliating him.

“I don’t owe SARS,” Montana declared firmly.

“This matter is aimed at humiliating me and tarnishing my reputation just before the court hearing.” 

“The truth is, this case goes back to 2018. The papers in this specific leg of the SARS application are from May 2023, but I want it to be clear—I owe no outstanding amounts to SARS, and I will not be paying SARS any money.”

Montana recounts that in 2018, SARS initially contacted him regarding an outstanding tax amount of R1.6 million, which he agreed to pay.

“I informed SARS that I was in the middle of a property sale and would settle the amount once the transfer was complete. I later paid R1.49 million from the proceeds of that sale,” he said. 

Following this, he said SARS conducted a decade-long retrospective assessment (2009-2019), claiming Montana had undeclared income of R23 million. 

“SARS claimed I owed roughly R8 million, but I have made it clear I do not owe them this,” Montana emphasised.

“I have objected to the assessment and believe their calculations are incorrect. I have evidence and legal advice to support my position.”

Montana criticised SARS for “vindictive” actions, including raising taxes on six vehicles financed through hire purchase, which he argues was inconsistent with tax principles.

“SARS said the funds to settle these vehicles did not originate from my account. But standard practice is that dealership settlements are routine, and my legal advisors say SARS’s treatment of this is incorrect,” he stated.

 “Some of my vehicles were financed and sold at a loss, which should not result in additional tax liabilities.”

He also pointed out that SARS targeted him during periods when he was unemployed.

“I understand my tax obligations, and I pay taxes when legally required to,” he declared. 

“But this case is not about tax; it’s about abuse of power, illegality, and victimisation by an institution that is supposed to serve the people.”

He firmly stated, “I will not be bullied or victimised. If necessary, I am prepared to defend my legal rights to the Constitutional Court. This is a fight for justice, not just for myself but for all South Africans who believe in the rule of law.”

Furthermore, he emphasised his commitment to lawful compliance. 

“I understand my tax obligations, and I pay taxes when legally required to,” he declared. 

“But this case is not about tax; it’s about abuse of power, illegality, and victimisation by an institution that is supposed to serve the people.”

He firmly stated, “I will not be bullied or victimised. If necessary, I am prepared to defend my legal rights to the Constitutional Court. This is a fight for justice, not just for myself but for all South Africans who believe in the rule of law.”

Cape Argus