Can Income Tax Department chase a closed Sdn Bhd for sales estimate mistake penalty tax 10 years ago?

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asked on Jun 24, 2019 at 18:31
edited on Jul 18, 2019 at 00:58
I have established a Sdn Bhd in 2005 and run business until 2010 and ceased operation (dormant) until officially been struck off by Suruhanjaya Syarikat Malaysia (SSM) in 2015.

(1) from 2005 until 2010, we have submitted audited account to Inland Revenue Board Of Malaysia (Income Tax Department) and fully paid the declared tax.

(2) from 2010-2015, as the entity is dormant, we were chased for Borang CP204, we did not submit as we though it should be ZERO and dormant, no need to submit. However, we were fully settled with Inland Revenue Board Of Malaysia for all issues during this period in year 2015.

Last week, we received a claim from Income Tax Department again stating 2008-2009 there were few sales estimation mistakes, which were detected by Income Tax system. The mistake was our sales estimations in year 2008 & 2009 were slightly beyond the 10% threshold of the actual sale figure. So, the system is re-adjusted and I am given penalty tax for this adjustment.

I have questions as below:

(1) The Sdn Bhd was entirely closed and no asset, no operation and officially strike off (not winding up nor bankrupt nor any creditor petition) in year 2015. Am I still oblige to the above-mentioned penalty tax?

(2) Does the Income Tax Department have legal rights to impose such penalty tax on me even beyond 7 years threshold? If so, what is the 7 years threshold about? Am I oblige all issues arose in future for life?

Please enlighten me.

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1 Answers

answered on Jun 24, 2019 at 19:09
edited Jul 18, 2019 at 01:01
Am I still oblige to the above-mentioned penalty tax? 

If so, what is the 7 years threshold about?
The Limitation Act 1953 does not apply to government.
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