The South African Revenue Service (SARS) has welcomed the favourable judgment handed down on 17 October 2025 by the High Court of South Africa, Gauteng in the case of Tshepo Lucky Montana.
Former Passenger Rail Agency of South Africa (PRASA) CEO and current Member of Parliament, Lucky Montana, was embroiled in a significant tax dispute with the South African Revenue Service (SARS) over an alleged R55 million tax debt.
The conflict dates back to 2009, when SARS claims Montana began under-declaring taxable income from various sources. SARS initiated an audit covering the 2009 to 2019 tax periods and found that Montana had unlawfully evaded his tax liability by under-declaring income. Despite being notified and granted extensions to submit the required documentation, Montana failed to comply, leading to additional assessments and penalties. By April 2022, his total tax debt had grown to approximately R28 million. When he failed to object within prescribed deadlines, SARS obtained a civil judgment against him, later amended to R44.9 million. The debt, with accumulated interest, now exceeds R55 million.
Montana disputed the assessments, asserting that he does not owe SARS any money. He claims that SARS fraudulently doctored a fake court judgment to justify the hefty tax bill and accuses the agency of maladministration and abuse of power.
In May 2023, SARS launched an application to sequestrate Montana’s estate in an attempt to recover the outstanding tax debt. Montana has publicly declared his intent to hold SARS accountable for what he describes as a “rotten system.”
On 5 June 2024, Mr Montana filed a notice of motion and founding affidavit seeking condonation for the late submission of his answering affidavit in the sequestration proceedings.
Subsequently, on 14 August 2024, SARS brought an application to strike out, in terms of Rule 6(5) of the Uniform Rules of Court, on the basis that Mr Montana’s founding affidavit contained scandalous, vexatious, and irrelevant allegations.
On 21 July 2025, the Court granted SARS’s application to strike out and dismissed Mr Montana’s condonation application with costs.
Mr Montana thereafter filed an application for leave to appeal against this judgment. The matter was heard on 17 October 2025 and the application for leave to appeal was dismissed with costs.
SARS said their strategic intent is to foster a culture of voluntary compliance.
” To this end, the organisation provides clarity and certainty to taxpayers regarding their legal obligations and continues to make it easy and seamless to comply through modern, enabling digital platforms. Conversely, SARS ensures that non-compliance becomes hard and costly for those who willfully choose to disregard their tax responsibilities.”
Commenting on the matter, SARS Commissioner Edward Kieswetter stated:
“SARS recognises that the vast majority of taxpayers are honest and willing to do the right thing by meeting their registration, filing, and payment obligations. Pursuant to SARS’ mandate of collecting all the revenue due to the fiscus, we will do whatever is legally permissible to deliver on that undertaking,” Kieswetter stated.
“In doing so, SARS will always uphold and respect the right of taxpayers to explore and exercise their constitutionally guaranteed rights to approach courts to seek a whatever remedy they prefer. SARS believes that all South Africans are equal before the law, and the organisation is enjoined by the law to enforce its provisions without fear, favour, or prejudice.”
SARS will not provide any further comment on this matter.
