(a) SunMax Sdn Bhd (year-ended 31 December) initially estimated its tax payable in 2020 for the purpose of filing its Form CP 204 as RM6,000. The company revised the estimate to RM8,000 in the 9th month. It was subsequently found that the actual tax liability is RM15,000.

Required:

Compute the penalty payable by SunMax Sdn Bhd on the difference in tax that was estimated and the actual tax payable by the company for YA 2020.

(b) On 30 April 2020, Lily submitted her 2019 tax return to the Director General of the Inland Revenue Board Malaysia. Lily was informed that a notice of assessment is deemed to have been issued for the year of assessment on the day she submits her tax return. After communicating with her sister on tax related matters, Lily wants to make an appeal as she realised having wrongly computed her tax payable.

Required:

Outline to Lily the appeal procedure under the Income Tax Act 1967.