SARS wants Lucky Montana declared insolvent
In a R46m tax legal battle scheduled to begin today, SARS has filed an application in the Gauteng High Court (Pretoria) for the attachment of assets belonging to former Prasa CEO Lucky Montana.
The tax authority is also asking the court for the MKP MP to be declared insolvent.
SARS wants the court to give it the green light for the appointment of a trustee to undertake the sequestration of Montana’s estate and the possession of his assets to recover the tax debt.
‘This is an application for sequestration of Mr Montana’s estate in terms of section 9(1) read with a section of the Insolvency Act. The liquidated claim is R45,516,160 (the outstanding debt) for which SARS obtained a judgment against Montana,’ SARS said in court papers.
A Business Day report says the tax debt against Montana relates to more than a decade of troubles with the tax authority.
Should Montana be declared insolvent, it threatens his job as the law states an unrehabilitated insolvent person cannot hold public office.
In 2020, Montana’s tax debt was R1.8m, stemming from a 2015 tax assessment he confirmed to owing then. He was the CEO of Prasa from 2010 to 2015.
In court papers, SARS said it uncovered the historical debt of R45m after conducting an audit of Montana’s tax affairs from 2009 to 2019.
His total debt is now R46,936,959.
The tax authority’s audit findings on Montana detail income and capital gains he did not declare in the 10-year period.
‘Montana under-declared his income, capital gains tax as well as non-employment related deposits,’ SARS said.
‘This resulted in an under-declaration of his tax. In addition, tax returns were not filed for the 2017 to 2020 years of assessment,’ SARS’ court papers read.
‘SARS issued a final demand for outstanding debt in the amount of R44 736 577 on 11 July 2022.’
Montana is opposing the application, notes Business Day.
‘The taxpayer’s total outstanding tax debt which is due or payable is R46,963,959. SARS therefore has a liquidated claim against Mr Montana’s estate and it complies with the requirements of section 9(1) of the Insolvency Act,’ the tax authority said.
The result, as SARS sees it, is that Montana’s liabilities exceed his assets by about R36.3m.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
