The South African Revenue Service (SARS) has published a Tax Administration Guide to Understatement Penalties dated 29 March 2018 that goes into great detail on South Africa's understatement penalty regime. An "understatement" means ‘any prejudice to SARS or the fiscus as a result of: a default in rendering a return; an omission from a return; an incorrect statement in a return; if no return is required, the failure to pay the correct amount of tax; or an impermissible avoidance arrangement. In essence, this means when a tax shortfall has resulted from any of the above. An understatement penalty will generally...