SARS
The Gauteng High Court has ruled in favour of SARS in its R55 million tax battle with former Prasa CEO Lucky Montana, dismissing his appeal bid and ordering him to pay punitive costs. SARS says the judgment reinforces its mandate to enforce tax laws fairly.
The South African Revenue Service (SARS) has received a significant boost from the Gauteng High Court, which dismissed an application for leave to appeal submitted by Umkhonto weSizwe MP, Lucky Montana.
On Monday, Montana dismissed SARS’ assessments, insisting he only owes R8 million in outstanding taxes — a fraction of the amount SARS claims he owes, while SARS says they are owed R55 million, which includes the capital amount and accumulated interest on penalties.
Last week, the revenue collector went public with the debt owed by the former Passenger Rail Services Authority CEO, after Montana accused SARS of defrauding him, resulting in Montana holding his own press briefing in which he denied owing SARS such a lot of money.
“I want to repeat. I do not owe SARS a cent. Some may ask why risk everything by taking on the mighty SARS. There is no doubt that SARS is a very powerful institution and a formidable opponent to take on. If you look at the network of attorneys that represent SARS in court, they are so powerful. As they say, it is not easy to take on a whale in the ocean.
"But I am willing to on the risk because I think the universe wants me to do this. This is not about me. It is about the citizens of South Africa, who have lost their houses and their vehicles and other assets they have built over the years,” Montana charged during his media briefing in Kempton Park ahead of Friday's judgment.
Montana’s leave to appeal was heard on Friday, 17 October 2025, by the High Court of South Africa, following a decision that came as a result of an application brought by SARS for Montana’s sequestration.
According to reports, on 5 June 2024, Montana filed a notice of motion and a 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, with the court granting the revenue collector’s application to strike out, while dismissing Montana’s condonation application with costs.
Montana thereafter applied 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.
Judge Etienne Christoffel Labuschagne SC ruling in favour of the revenue collector stated:" The costs of the strike application out are to be paid on a punitive scale of attorney and client, including the costs of two counsel, Scale C, where so employed. The applicant’s condonation application is dismissed with costs, such costs to include the costs of two counsel where so employed, on Scale C."
SARS welcomed the ruling, saying it 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. 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 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," it said.
