In an escalation of tensions between former Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana and the South African Revenue Service (SARS), Montana has vowed not to be intimidated by SARS Commissioner Edward Kieswetter following the tax authority’s ultimatum to disclose his tax information.
The public spat erupted after Montana laid criminal charges against Kieswetter and other SARS officials, accusing them of fabricating a court judgment to justify a mammoth R55 million tax bill and subsequent sequestration proceedings against him.
Montana alleges this judgment and related court order do not exist, branding SARS’ actions as fraudulent.
For its part, SARS vehemently rejected the accusations on Tuesday, condemning Montana’s claims as an “attempt to obfuscate, delay, distract, counter, and create unnecessary drama.”
The tax authority warned it is prepared to invoke Section 67(5) of the Tax Administration Act — a law permitting the disclosure of previously confidential taxpayer information — to dispel what it called falsehoods spread by Montana.
Montana responded promptly in a statement challenging SARS to produce the allegedly doctored court documentation, an offer SARS has yet to meet.
“I have taken note of the response by the South African Revenue Services (SARS) to my decision to lay criminal charges against SARS Commissioner Kieswetter and another official, who deposed to various affidavits in this matter on behalf of the Commissioner,” Montana said.
“I laid a criminal complaint with charges of fraud, perjury, abuse of power, defeating the ends of justice, and violation of the Tax Administration Act by the SARS Commissioner and his officials.”
He stated that he is perplexed by SARS response to his criminal complaint and the deep “arrogance” which underpins the matter.
“Instead of addressing the central issue about the Default Judgment and Court Order, the Commissioner chose to abuse his powers, issue ultimatums again, and threaten me with the hope that I would change my position.
“It will be an abuse of power for the Commissioner to disclose my tax information without due legal process. I will defend my Constitutional rights in this regard and respond accordingly at the time.
“We are truly under a Mafia State with officials like Kieswetter who think they are above the law. I will not be threatened by the SARS Commissioner or SARS officials.”
Montana further highlighted his attorneys’ attempts to secure the court judgment allegedly obtained by SARS to support its sequestration application.
His lawyers reportedly contacted SARS attorneys and the relevant courts and even reviewed the Case Lines electronic records, but they could not locate the purported default judgment or court order.
Instead, Montana stated that SARS shared only internal documents unrelated to his case number.
“The Sheriff of the Court and the Police raided my family’s homes without a Court Order,” Montana alleged, underscoring the gravity of the situation.
Montana also called on the Commissioner to publish the disputed court documents publicly.
“The only way for Kieswetter to avoid or end any public spat is to publish by this afternoon the Default Judgment and Court Order that SARS obtained against me. If SARS does this, we will focus on resolving this matter.”
The explosive confrontation adds another layer to the fraught relationship between Montana, a Member of Parliament, and SARS, with both sides accusing the other of misconduct and abuse of power.
Politics
