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…