Lucky Montana, the former Prasa boss who is now on the MKP benches in Parliament, is planning to sue SARS for R50m in damages.

News24 says this comes after the tax authority disclosed his tax affairs to disprove his claims of fraud.

Yesterday, Montana said this was unlawful, but SARS and a tax expert say it is legal, given the circumstances. SARS is pursuing Montana for R55m in outstanding tax debts, but he now plans to sue for reputational and financial damages.

During a lengthy media briefing yesterday, Montana said: ‘I’ve given an instruction to my lawyers to say that the damages will be for R50m that I want from SARS.’

Montana claimed yesterday that 85% of the R55m comprised interest and penalties.

He also argued that he, in fact, didn’t owe anything, as SARS’ tax bill has been grossly overstated and miscalculated.

Montana also insisted the disclosure of his personal tax affairs was clearly ‘unlawful’ and ‘criminal’ and ‘there will be a price to pay’.

SARS has, however, said the Tax Administration Act empowers it to publicly disclose taxpayer information when necessary to counteract false statements that may undermine the public confidence in the tax system.

Charles de Wet, an executive in tax practice at law firm ENS, agreed that SARS was indeed able to publish a taxpayer’s tax information in such circumstances, provided that it gave at least 24 hours’ notice to the taxpayer.

Full News24 report