Sars also criticised the former Prasa head for attacking it while simultaneously trying to settle his debt
The South African Revenue Service (Sars) on Saturday revealed that former Prasa CEO Lucky Montana offered it R5.4 million as a compromise offer to settle the R55 million it says he owes it.
It added that it is also “untenable” for Montana to attack Sars while trying to settle his debt at the same time.
Sars discloses Lucky Montana’s tax affairs
“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 Sars spokesperson Siphithi Sibeko.
Sars made this statement on Saturday after promising to disclose his confidential tax affairs unless he retracted the “false claims” he made against it this week.
Montana told IOL that Sars had “fraudulently doctored a fake court judgment to justify a hefty tax bill”. He also accused the taxman of “maladministration, abuse of power and a politically motivated witch hunt”.
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Montana has been involved in a dispute with Sars since November 2020, when they initiated an audit of him.
This came after Sars said he failed to submit income tax returns in 2017, 2018 and 2019. Sibeko also said that Sars found that Montana had evaded tax by under-declaring income from various sources.
Sequestration hearing
Sibeko added that Sars will continue with its sequestration hearing against Montana if the compromise process is not settled.
“Mr Montana has still not filed his answering affidavit in the sequestration application. Sars’s stated position against him therefore stands uncontested,” he said.
He also said Sars has asked the police to look into “the abuse of resources and complaints procedures by persons who seek to distract, divert and create unnecessary drama”.
ALSO READ: Zondo Commission unable to link Montana to R36m Prasa ‘theft’
