Matter 4: Information pertaining to a SARS audit conducted on Nelson and Ntshuxeko: The South African Revenue Service (SARS) selected Nelson and Ntshuxeko for an audit for the 2023 year of assessment and advised them of their intentions on 1 September 2023. On that day, SARS noted the following: SARS was able to get in contact with both Nelson and Ntshuxeko on the addresses that they provided. During the process of conducting their audit, SARS concluded the following: With reference to the SARS audit conducted (Matter 4): (i) Briefly assess, supported by references to relevant legislation, if there are any penalties applicable to Nelson or Ntshuxeko, prior to the start of the audit but after 30 August 2023, in relation to their obligation to submit their 2023 income tax returns. (ii) Calculate any understatement penalties applicable as a result of the transgressions identified by SARS during the audit conducted. Communication skills - clarity of expression