UPDATE: ‘New clique’ at Sars seizing assets ‘vindictive’, ‘unethical’ – Lucky Montana

Former Passenger Rail Agency of South Africa (Prasa) chief executive Lucky Montana has described the latest move by the South African Revenue Service (Sars), who seized his assets, as “vindictive” and “unethical”.

Montana said the Sheriff of the Court arrived at his home on Wednesday morning with a warrant of execution.

The Daily Maverick reported the sheriff had been instructed “to seize two luxury vehicles and other moveable property” belonging to him.

Montana said: “The latest action by Sars is clearly vindictive, unethical and smacks of abuse of power by the new clique running it.”

He claimed he was not served with a summons to defend the case, saying the actions by the revenue service was not an unexpected one as it had been going on for two years.

Montana confirmed to News24 he owed Sars R1.6 million arising from the sale of two properties.

However, warrants were granted by the court in relation to unpaid taxes amounting to R1.8 million, Daily Maverick reported earlier.

“Sars had brought this to my attention through my tax adviser. I agreed to settle the amount as soon as I have disposed of another property, which Sars was informed of.

“I am fully aware of my obligation to the tax authorities, and the role that this plays in our lives. I have never disputed the amount owed to Sars and have made a firm commitment to settle it.”

Montana said on the day that he wrote to the Zondo commission of inquiry into state capture, the revenue service contacted him directly to discuss his tax matters.

“It was no coincidence that Sars decided to contact me directly after I stated my intention to testify before the Zondo commission.

“The latest action is a clear indication to me that they have also seen my detailed submission to the commission.”

Montana claimed the latest action by Sars was an act to intimidate him.

“While I have accepted my obligation to Sars and do not wish to change my commitment to settle the R1.6 million, the latest action has nothing to do with my tax status but is an attempt to intimidate me.

“Unfortunately for them, I am not intimidated. Sars can proceed to attach my assets but will not win the ultimate war.

“The Zondo commission itself has tried to [pressurise] me to drop some aspects of my statement. I refused and withdrew from testifying before it.”

This comes after the North Gauteng High Court ordered the sheriff to seize a couple of luxury vehicles and other moveable property belonging to Montana. Warrants were granted by the court in relation to unpaid taxes amounting to R1.8 million.

According to a Daily Maverick report, two Mercedes-Benzes are on the list of items to be attached by the sheriff from items stored at two of the six upmarket residents associated with Montana.

In the second warrant of execution, the sheriff is to seize movable property at Montana’s residence in Saxonwold, Johannesburg.

It is, however, unclear if the sheriff has enforced the warrants of execution, while deeds office records highlighted that Montana owned residential properties in his own name for which he forked out R20.2 million. These included a property in Hurlingham that he allegedly acquired without obtaining a bank loan.

Below is Montana’s full statement:

The action by SARS was not unexpected. This has been going on for the past two years. I owe the taxman an amount of around R1.6 million arising from the sale of two properties – Capital Gains Tax. SARS had brought this to my attention through my tax adviser.

I agreed to settle the amount as soon as I have disposed of another property, which SARS was informed of. I am fully aware of my obligation to the tax authorities, and the role that this plays in our lives.

I have never disputed the amount owed to SARS and have made a firm commitment to settle this. However, the latest action by SARS is clearly vindictive, unethical and smacks of abuse of power by the new clique running SARS.

I was never served with the summons to defend the matter.

The Sheriff of the Court arrived at my home this morning with a Warrant of Execution.

This action by SARS is driven by two factors.

Firstly, it is a vindictive action by the SARS Executive, Mr Viwe Mlenzana.

He was fired as CEO of Shosholoza Meyl for corruption and irregular conduct during my tenure as Group CEO of PRASA.

I was made aware last year that he had abused his position and summonsed certain taxpayers and pressured them to “spill the beans on Montana”.

They refused and have been subjected to extreme harassment and repeated audits by SARS. I wonder if Viwe Mlenzana has disclosed to his boss, the Commissioner of SARS and the ANC faction that brought him to SARS that he was fired from PRASA for fraud and corruption.

Let PRASA disclose a file of his disciplinary action.

SARS is corrupt to the core. He is bitter and angry, using his position at SARS to settle old scores.

Secondly, SARS has always addressed my tax matters via my tax advisor, and never directly with me.

However, on the day that I decided to write to the Zondo Commission (State Capture Commission), they contacted me directly to discuss my tax matters.

It was not a coincidence that SARS decided to contact me directly immediately after I stated my intention to testify before the Zondo Commission.

The latest action is a clear indication to me that they have also seen my detailed submission to the Zondo Commission, which indicates the roles of former SARS executives in unlawful activities.

Whilst I have accepted my obligation to SARS and do not wish to change my commitment to settle the R1.6 mil, the latest action has nothing to do with my tax status but an attempt to intimidate me.

I stated in my Zondo Commission Statement that SARS is being used to fight dirty political battles by powerful political forces.

Unfortunately for them, I am not intimidated. SARS can proceed to attach my assets but will not win the ultimate war.

Pieter-Louis Myburg was already informed by SARS when the Sheriff of the Court were standing at the gate of my home in Saxonwold.

This is aimed at embarrassing and intimidating me to abandon my testimony before the Commission. The Zondo Commission itself has tried to “pressurise” me to drop some aspects of my statement.

I had refused and withdrew from testifying before the Commission. This backward tactics and abuse of power will simply not work with me. I intend to take up this unethical conduct and abuse of power with the Tax Ombudsman, the retired Judge Bernard Ngoepe.

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