In most countries in the world, companies account for less than 20% of the total tax-payers. However, records show that the companies contribute more than 80% of the taxes collected by most countries. They are important contributors to taxation and thus understanding how the corporate tax functions are vital to learners and also professionals dealing with taxation.

You are required to complete the tasks provided by the following scenario.

Asham Sdn Bhd (Asham) annually closes its accounts to 30 November. For the year of assessment 2019, it estimated its tax at RM100,000, but the final tax liability was RM180,000.

Asham plans to move to new premises in three months time. In preparation for the move, Asham intends to discard its old business records, retaining only the records relating to the past three years.

You are required to refer to the relevant section of the Income Tax Act of Malaysia to:

a) Compute the penalty for the excessive difference between the estimated tax and the final tax payable by Asham Sdn Bhd

b) Explain, with reasons, the date by which Asham Sdn Bhd should furnish its estimate of tax for the year of Assessment 2020