‘It was an error’ – SARS on one-cent letter of demand

SARS says it made a mistake when it sent a letter of demand for R0.01.

The South African Revenue Service (SARS) has admitted it mistakenly issued a taxpayer with a final demand to pay an outstanding tax bill of just one cent.

Responding to questions from IOL, the revenue service acknowledged that the demand should not have been sent. “The letter was issued in error,” SARS said.

The tax man did not explain how the error occurred or respond to IOL's other questions, including whether there is a minimum amount below which it does not pursue outstanding tax debt.

It also did not say whether an outstanding balance of just one cent could affect a taxpayer's compliance status or refund or potentially trigger further collection action.