In an extraordinary and aggressive public rebuttal, the South African Revenue Service (SARS) has laid bare the tax affairs of former Prasa CEO and Member of Parliament Lucky Montana, revealing that he has offered a R5.4 million settlement to resolve a staggering tax debt exceeding R55 million. The disclosure comes amid a bitter public feud, with Montana having previously accused the tax authority of fabricating court documents to justify the massive bill.
The revenue service took the rare step of holding a press briefing on Saturday to publish detailed timelines and correspondence, directly challenging Montana’s narrative. SARS issued a stark 24-hour ultimatum to the former Prasa boss, demanding he retract his “false and misleading” claims or face the public exposure of his confidential tax information—a threat it has now carried out.
A Disputed Debt and a Conditional Offer
Central to the revelation is a formal compromise offer submitted by Montana on August 8, 2025. In it, he proposed a payment of approximately R5.4 million to satisfy the total outstanding debt of R55,133,282.94. However, SARS was quick to highlight the legal incongruity of this offer.
“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 agency stated. This directly contradicts Montana’s public position, where he has consistently disputed the debt’s legitimacy and even opened a fraud case against SARS.
A Timeline of Non-Compliance and Legal Escalation
SARS outlined a detailed history of what it describes as Montana’s prolonged non-compliance. This includes an alleged failure to submit tax returns for multiple years and providing “limited” responses during the audit process, despite being granted several extensions. The revenue service emphasized that the additional assessments have now become final and are no longer open to dispute, as Montana failed to file a valid objection.
Due to the continued non-payment, SARS escalated the matter by launching a sequestration application against Montana in May 2023. Crucially, the agency noted that Montana has yet to file an answering affidavit in this high-stakes legal proceeding.
Addressing the “Doctored Document” Allegation Head-On
In its most forceful rebuttal, SARS directly addressed Montana’s claim that it “fraudulently doctored a fake court judgment.” The agency flatly denied this, explaining that certified statements of account were lawfully filed with the High Court, a standard legal procedure that carries the full effect of a civil judgment.
This public airing of confidential tax information marks a significant escalation in the conflict, underscoring SARS’s increasingly assertive stance under Commissioner Edward Kieswetter. The case now presents a stark choice for Lucky Montana: either substantiate his fraud allegations in court or face the legal and financial consequences of a debt that SARS has unequivocally declared as final and due.
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