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Johannesburg - EFF leader Julius Malema's lawyers were expected to argue in court on Monday why a provisional sequestration order against him should not be made final.
In May, Malema's provisional sequestration was extended and the matter was postponed.
According to Sunday's Rapport, the SA Revenue Service (Sars), would ask for a two-month extension of Malema's provisional sequestration to determine where he got the money to repay his tax debt each month.
According to "impeccable sources", alleged cigarette smuggler Andriano Mazzotti was helping Malema pay his tax debt, the newspaper reported.
Mazzotti was also being investigated by Sars for smuggling and tax evasion.
Malema previously admitted he had not attended to his tax affairs the way the law required. According to court papers, Malema owed Sars R16m, plus interest, after failing to submit tax returns between 2006 and 2010.
In 2010 Sars contacted Malema about his failure to submit tax returns. It took Malema 18 months, after many attempts by Sars, to file his outstanding returns.
Malema had failed to register his Ratanang Family Trust for tax purposes, and Sars had to do this on his behalf. Ratanang is the name of Malema's young son.
Sars attached some of Malema's property, including a farm in Limpopo and a house still under construction in Johannesburg, to recoup the taxes he owed.
In February, Judge Bill Prinsloo ordered that Malema's estate be provisionally sequestrated.
A final sequestration order would affect Malema's political career, as he would no longer be allowed to serve as a Member of Parliament.
Malema said the offer he made to Sars included an additional amount to be paid by him. Sars said the details of the agreement were confidential.
If Malema failed to disclose a material fact related to his settlement, supplied materially wrong information, or broke the conditions of the agreement, Sars would bring the final sequestration order into effect.
Malema had to meet the requirements in order for the compromise to be considered favourably. This included making a full and verifiable disclosure regarding his assets, liabilities, and income.
Economic Freedom Fighters national spokesperson Mbuyiseni Ndlozi said in a statement late on Sunday evening that Malema would be present in court for the hearing.
