I had this problem on a Centos cloud server. 

The obvious first thing is to make sure tar is installed. Look for a file 
/bin/tar or possibly /usr/bin/tar and make sure it exists.

Then make sure the tar config directive is set in cpan. do 
*cpan> o conf tar *
and it should respond something like tar    [/bin/tar]
If it doesn't respond with the correct directory for /bin/tar, do
*cpan> o conf tar /bin/tar *(or /usr/bin/tar or wherever it is)
*cpan> o conf commit*

Still not working?
The issue that I ran into was there was not enough kernel memory, and 
apparently this is a common issue in virtual systems.
All I did was *stop mysql* and that was enough. I don't fully understand 
why this last step was necessary to solve the issue as
I figured the resource manager would be intelligent enough to figure it 
out. 

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