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IOL News
02-08-2025
- Politics
- IOL News
Lucky Montana's R15 million tax battle with Sars heats up
Prasa's former chief executive Lucky Montana is facing a R15 million tax bill from the SA Revenue Service. Image: File uMkhonto weSizwe Party (MKP) MP and former Passenger Rail Agency of SA (Prasa) chief executive Lucky Montana faces a tax bill of over R15 million by the SA Revenue Service (Sars). Sars has also launched proceedings to have him sequestrated. The tax collection entity applied to the Gauteng High Court, Pretoria last month to strike out several allegations made by Montana. According to Sars, allegations in about seven paragraphs were identified as objectionable matter. A defiant Montana on Saturday said the battle is far from over and is likely to end in the Constitutional Court. "On July 21, I filed an application in the high court to rescind the original default judgement obtained by Sars in 2022, without my knowledge. "This led us to the current situation. In addition, we have taken the decision to appeal the recent judgment. This is but one battle in a much broader legal fight. Until these two matters are finalised by the courts, the battle is not over," Montana explained. In his replying affidavit, Montana accused Sars of arrogant conduct that disregards legitimate objections and denies him constitutional rights to administrative justice and fairness. Judge Etienne Labuschagne found the allegations to be irrelevant and vexatious. Montana also accused Sars of maladministration and abuse of power and of indulging in a witch hunt against him, motivated by a political agenda. In addition, he contended that Sars persisted in pursuing false claims that he bought properties to the value of R36m in order to 'nail' him. He alleged that Sars was part of a dirty campaign of an unidentified Johannesburg firm of attorneys to target persons like him by pursuing false allegations. Other allegations include Sars breaking into his house and acting like a criminal gang. Judge Labuschagne said all these allegations are scandalous and vexatious and were also not relevant. In its response to Montana, Sars argued that it is prejudiced by such allegations and that not only are the allegations scandalous, vexatious or irrelevant, but the entity has no right to respond. Additionally, it faces institutional reputational harm, to the detriment of the tax administration scheme in South Africa if such allegations are not struck out. Sars succeeded in having the allegations struck out, with Judge Labuschagne also awarding the revenue service costs of the strike application out are to be paid on a punitive scale of attorney and client, including the costs of two counsels, where so employed. "I am satisfied that Sars has established a right to strike out the above material identified in its strike out notice. "The allegations are emotive and intemperate, unsupported by facts and constitute gratuitous abuse. They are irrelevant to the issue of whether this court should condone the late filing of an answering affidavit," the judge found. He said while the court is mindful not to stifle robust debate such allegations fall to be deprecated as irrelevant, unhelpful and calculated to harm and that such conduct warrants a punitive cost order. The judge added that Montana's answering affidavit was due in the sequestration proceedings on April 26 last year but since then, he has failed to file it or to indicate in papers when it would be filed.
The Citizen
01-08-2025
- Business
- The Citizen
Crime that funds classrooms
A landmark court ruling forces a cigarette seller to fund desks for local schools, benefiting pupils and justice alike. The sellers of illegal cigarettes are, according to the SA Revenue Service, posing a significant threat to the fiscus because of their avoidance of duties and value added tax. That's why a conviction of such a seller – and accompanying hefty fine – is something to be welcomed. But, the Evander Regional Court went a step further this week in imposing a further punishment which will have a direct social benefit. Uptown Superstore was fined R600 000 – but must also buy 504 durable, quality double-seater desks for four schools in the area. ALSO READ: Company found guilty of illicit cigarette trade, fined R600k and ordered to buy desks for schools The company has three months to comply with the court judgment. Major-General Nico Gerber, provincial head of the Directorate for Priority Crime Investigation, was a master of understatement in calling it 'an interesting sentence…' But was spot-on when he added: 'The community is benefiting from this sentence and it will definitely assist the next generation in their needs for a better education.' We suggest that other courts take judicial notice of that sentence and consider imposing similar punishments. A crime which affects the community – and smuggling does that by taking tax revenue away from where it could be spent improving lives – should have some sort of payback which helps the community. NOW READ: Vodacom scores ConCourt win over Please Call Me inventor Nkosana Makate
TimesLIVE
17-07-2025
- Entertainment
- TimesLIVE
‘I'm human too' — Shauwn ‘MaMkhize' Mkhize asks for respect
Shauwn 'MaMkhize' Mkhize wants people to think before dragging her name through mud. The controversial businesswoman and reality TV star has been in turmoil since a raid was conducted by the SA Revenue Service for falling behind on taxes in November 2024 and her exit from former Premier Soccer League team Royal AM FC, which was auctioned off in a bid to recoup her reported R40m tax debt. Recently she was falsely linked to businessman Vusimuzi 'Cat' Matlala by Ian Cameron during a parliamentary briefing. During a recent sit down on 947 with Robert Marawa, MamKhize said despite Ian having apologised, she felt 'he was trying to get relevance' and needed to give a 'proper' public apology to clear her name. MaMkhize said she wished people didn't overlook the fact that she is human and would respect her feelings when sharing their opinions about her. 'I so wish people can understand I am human. As much as I can look like an iron lady, sometimes it hurts. I'd really love for anyone who decides to write or say anything about me to check their facts because at the end of the day I'm a mother, I've got kids, I've got grandkids, I'm human. 'Yes, I might be this jolly jumpy looks untouchable person, but I'm human. There are so many people who look up to me. If only people can understand I am part of liberation, and I've created a lot of jobs for people. Sometimes when things affect me, before it comes to me first, it affects a lot of people.'
IOL News
11-07-2025
- Business
- IOL News
SARS aims for R100bn in tax collection this season
Sars's debt book is currently comprised of all tax types, including personal and corporate income tax, as well as value-added tax and unpaid payroll taxes. Image: Ziphozonke Lushaba/Independent Newspapers HAVING had great success with its specialised tax compliance programmes over the last few years, the SA Revenue Service (Sars) has now called in the cavalry this tax return filing season, through Project AmaBillions, to bolster its tax debt collection capabilities. As the name may indicate, the successful collection of billions in outstanding tax revenue, be it disputed or undisputed tax debts, requires the harmonising of manpower and artificial intelligence, both key items on Sars's agenda. The revenue authority's recently published monthly collection data showed R95 billion in outstanding taxes being collected for the 12-month period ending March 2025. Although an impressive and unprecedented collection windfall, a staggering R422.6bn in undisputed tax debts, remains outstanding as at the end of May 2025. In its pursuit of making non-compliance hard and costly, and chasing South Africa's largest ever tax revenue collection pay-day, Sars has taken the idiom of 'you have to spend money to make money' to a whole other level. Through an additional expenditure allocation of R7.5bn over the medium-term, Sars has onboarded around 1 700 new resources, from matriculants to seasoned tax and compliance experts. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Sounds a lot like Survivor, or better yet, the Hunger Games — only the strong will survive… but no, the intention behind this strategic move is to spend a few billion rand, to collect Amabillions; R20 to R50 billion more, per year, to be precise. With a current debt book totalling more than R530bn, Sars's assertive collection efforts do serve the best interests of the South African economy, even if the taxpayers finding themselves with a civil judgment against their names do not think so. Sars's debt book is currently comprised of all tax types, including personal and corporate income tax, as well as value-added tax and unpaid payroll taxes. This includes taxpayers who wilfully avoid or evade the payment of their taxes, whose amounts are well within their means to settle, and who should not be surprised when Sars empties their bank accounts. But what happens to those individuals, or small businesses, who, due to unforeseen circumstances, simply cannot afford to settle their tax debt to Sars? Whether it be more time needed (monthly instalments), or interest and penalties having snowballed the debt well beyond affordability and some financial reprieve is needed, there are legal tax debt relief mechanisms available. Where a taxpayer is truly experiencing financial hardship, they may qualify for a compromise of tax debt. This is where the taxpayer, who cannot afford to settle the entire amount, approaches Sars and asks for a write-off of interest and penalties which have been attributed to the capital amount owed. The taxpayer then offers to settle (in part or in full) the capital amount owed to Sars, either by lump sum or instalment payments. This proposal, when accepted by Sars, must be reduced to writing. The biggest attraction to a compromise is the write-off of interest and penalties, which is a life jacket afforded to taxpayers who are genuinely experiencing financial hardship but wish to settle their debt and remain compliant moving forward. It is also important to note that a compromise can be applied to any form of tax debt and across all tax types, be it income tax, VAT or PAYE, and regardless of whether it is for an individual, trust or company. There is relief available to all taxpayers who qualify for the compromise of tax debt. Taxpayers who do not satisfy the requirements for a compromise but cannot afford to settle a tax debt in a lump sum payment still have the option to apply and enter into a payment arrangement with Sars, which is known as a deferral of payment. This is where the taxpayer applies to Sars, subject to certain conditions, for a payment agreement in which the taxpayer can settle the outstanding amount over monthly instalment payments over time. This is an attractive option to many taxpayers, as it lessens the burden and reduces a large number that is expected to be settled immediately, to one that is manageable and paid in monthly instalments, which are convenient to the taxpayer and Sars. To protect yourself from Sars, ensuring compliance remains the best strategy. Where you find yourself on the wrong side of Sars, there is a first-mover advantage in seeking the appropriate tax advisory, ensuring the necessary steps are taken to protect both yourself and your bank balance from paying the price for what could be the smallest of mistakes. However, where things do go wrong, Sars must be engaged legally on all fronts. As a rule of thumb, all correspondence received from Sars should be immediately addressed by a qualified tax specialist or tax attorney, which will serve to safeguard taxpayers against Sars implementing collection measures. It is recommended that a request for compromise or payment arrangement be made in a proactive manner, even before a Letter of Final Demand is received, rather than waiting for Sars to come knocking at your door. Through these carefully negotiated solutions, there is the possibility of a fresh start — a fair and balanced outcome that recognises the taxpayer's situation and provides the breathing room necessary to regain financial stability, whilst ensuring tax compliance this 2025 tax return filing season. * Jashwin Baijoo is an associate director and head of strategic engagement and compliance at Tax Consulting SA. ** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
TimesLIVE
08-07-2025
- Politics
- TimesLIVE
Cache of firearms seized from MaMkhize's home belonged to Matlala's company: Ian Cameron
Police portfolio committee chair Ian Cameron has revealed the cache of firearms seized from controversial businesswoman Shauwn 'MaMkhize' Mkhize's home in Durban last year belonged to the security company owned by businessman Vusumuzi 'Cat' Matlala. In November 2024, more than 40 firearms were confiscated from Mkhize's mansion during a raid by the Hawks, police and SA Revenue Service. Matlala was implicated in damning allegations made by KwaZulu-Natal police commissioner Lt-Gen Nhlanhla Mkhwanazi against senior law enforcement officials, accusing them of interfering in cases police are investigating. Mkhwanazi said WhatsApp messages found on Matlala's phone allegedly link police minister Senzo Mchunu to communications through an associate, Brown Mogotsi. Matlala was arrested on May 14 on three counts of attempted murder. His company was awarded a R360m contract by the SA Police Service in 2024.
