As SARS improves its abilities to collect taxes from businesses, more companies have found themselves on the receiving end of a SARS letter of demand. Receiving such a letter of demand is often an intimidating surprise for business owners and managers, and can cause panic and stress, even among businesses that would consider their tax responsibilities to be up-to-date and compliant. Whether or not the letter of demand is real, correct or accurate, as a business owner you are well advised to handle such communications from SARS with care! In this article we find out what it means to receive a letter of demand, how to handle the matter and what steps to take.