Wrong display of html e-mail in Outlook

I created an html e-mail with the following code:

<!DOCTYPE html>
<html style="margin:0px;padding:0px;">
<head>
<meta name="viewport" content="width=device-width, initial-scale=1.0, user-scalable=no">
</head>
<body style="margin:0px;padding:0px;">

<div style="background-color:orange;max-width:600px;height:180px;margin-left:auto;margin-right:auto;">

<img src="http://placehold.jp/500x710.png" style="height:180px;width:127px;display:block;border:0;float:right;margin:0px;padding:0px;">

<p style="font-size:40px;padding-left:10px;margin-top:0px;padding-top:40px;">This is my important<br>html test</p>

</div>

</body>
</html>

I also tested this code with Outlook 2016 (Win 7) and I'm getting an unexpected result.

On Outlook 2016 (Win 7) the html gets rendered like this:

instead of the expected like this:

Is this a known Outlook problem? How can I fix it?

Using an image with 127x180 results to the same, only the image is smaller.

<div> is problematic in Outlook. It doesn't really work well with it and it's best to avoid it.
max-width is ignored by Outlook.
padding-top is ignored by Outlook.
Outlook ignores width and height in a style sheet. Use <img width="180" /> instead.

This works consistently across every email client. It may not be the way I would code an email, I would rather put the image and text in their own <td> for better manipulation, but based on your important html test, I wanted to demonstrate a way to make things work.

<table role="presentation" cellspacing="0" cellpadding="0" border="0" width="600">
  <tr>
    <td valign="middle" style="padding: 20px; background-color:orange;">
      <img src="http://placehold.jp/500x710.png" width="127" height="180" align="right"   style="display:block;">
      <p style="font-size: 40px; padding-left: 10px; margin-top: 0px;">This is my important<br>html test</p>
    </td>
  </tr>
</table>

Good luck.