Montana vs SARS: Tax Law, Not Politics
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No, it’s not politics.
SARS has firmly stated that the tax dispute involving MP Tshepo Lucky Montana isn’t a political matter or a “witch hunt.” The issues go back to 2011, long before he became a public representative.
Recently, Mr Montana publicly accused SARS of:
Abusing its powers
Engaging in maladministration
Orchestrating a politically motivated tax campaign against him
Faking a court judgment to justify a tax bill.
He even laid criminal charges of fraud against SARS officials.
SARS has responded publicly to correct the record and protect the integrity of the tax system, as allowed under section 67(5) of the Tax Administration Act. Below is a summary of what you, as a professional, need to know.
The Tax Facts: What Actually Happened
Montana failed to file tax returns for 2017, 2018, and 2019.
SARS audited his 2009–2019 tax years and found under-declared income from multiple sources.
He was notified, given deadlines, and granted multiple extensions to provide documentation, but repeatedly failed to comply.
On 7 July 2021, SARS issued a Letter of Findings, notifying him of R15.5 million in additional taxes (capital only).
By April 2022, the total tax debt (including penalties and interest) stood at R28 million.
Montana responded by making vague, limited submissions and launching public attacks, rather than engaging in the legal process.
The Court Steps In
In 2023, Montana took SARS to court, repeating his public claims. But the High Court rejected his allegations, stating they were:
Scandalous and vexatious
Unsupported by facts
An abuse of the court process.
The court issued a punitive cost order against him and struck out his wild claims.
Tax Debt Becomes Final
Given that Montana missed deadlines for submitting a valid objection and did not request a suspension of payment, SARS proceeded to recover the debt using legal avenues available under the Tax Administration Act. A default judgment was issued, confirming Montana’s debt as a valid court order. SARS began debt collection and legal recovery, including applying for the sequestration of Montana’s estate in 2023.
To date, Mr Montana has not filed any valid objection. The tax debt is final and due, now exceeding R55 million.
Recent Developments
In August 2025, Montana offered R5.4 million as a compromise on the full debt. SARS is currently considering the offer, but only if he formally accepts that the debt is valid and no longer disputes it. Meanwhile, he continues to publicly attack SARS while trying to settle his debt behind the scenes.
SARS’s Message to the Public
SARS will not be drawn into false narratives.
All actions taken followed the law and due process.
Taxpayers must use the legal routes available to raise objections, not media campaigns.
SARS remains committed to treating all taxpayers fairly and protecting the tax system’s integrity.
The Commissioner has assured full cooperation with SAPS and the NPA regarding any genuine investigations, but warned against abuse of legal processes and public resources.
Why This Matters for Accountants
This case reminds us:
Tax compliance is non-negotiable. Failure to respond to audits has serious consequences.
Deadlines matter. Missing them means the tax becomes final and enforceable.
Public attacks won’t undo legal obligations. Only valid objections through proper channels count.
As trusted advisors, CIBA members play a critical role in helping clients engage properly with SARS, meet deadlines, and avoid reputational and financial damage.
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