R55 million? SARS exposes Lucky Montana’s massive unpaid tax debt

The South African Revenue Service (SARS) has confirmed that former Prasa Group CEO Lucky Montana owes more than R55 million in unpaid taxes. According to SARS spokesperson Siphithi Sibeko, the debt has accumulated over several years and remains one of the largest individual tax liabilities currently under review.

Sibeko revealed that Montana approached SARS in August this year with a proposal to settle his debt through what he termed a “compromise offer.” “Mr. Lucky Montana currently owes a tax bill of over R55 million. He approached SARS with a compromise offer of R5.4 million for his debt,” Sibeko said.

However, the offer was reportedly rejected as it fell far short of the total outstanding amount. Sibeko explained that while SARS does allow for negotiated settlements under specific legal and financial conditions, each proposal must reflect a reasonable and fair effort to meet tax obligations. “SARS will always engage with taxpayers in good faith, but offers must demonstrate both willingness and capacity to comply,” he added.

Montana, who previously led the Passenger Rail Agency of South Africa (Prasa), has been mired in controversy for years over allegations of corruption and financial mismanagement during his tenure. His financial troubles with SARS now add to the growing scrutiny surrounding his business dealings and lifestyle.

Sources close to the case suggest that the tax dispute involves undeclared income, penalties, and interest accumulated over several financial periods. It’s believed that SARS has intensified efforts to recover outstanding amounts, including attaching assets if necessary.

Public reaction to the news has been swift, with many South Africans expressing frustration over what they see as a pattern of powerful individuals trying to evade accountability. “He wants to pay R5 million for a R55 million debt? That’s not compromise, that’s insult,” one online user commented.As the case unfolds, it remains to be seen whether Montana will return with a revised settlement offer or face further legal action from SARS to recover the full amount.

Stay tuned for updates on this developing story — and don’t forget to like, comment, share, and follow for more on South Africa’s legal and financial affairs.