that was initially recorded, such difference may cause a material adjustment to the carrying amount of the tax recoverable balance recorded in the period in which such determination is made. Reinvestment allowance (‘RIA’) litigation The Company and the Inland Revenue Board (‘IRB’) have entered into varies of litigation cases in respect of the Company’s eligibility for RIA. The details of the cases are as disclosed in Note 42(a). As at 31 December 2023, the Group and the Company recorded a tax recoverable of RM3,522.4 million from the IRB arising from: • Resubmission of tax computations for the Years of Assessment (‘YAs’) 2003 to 2006 and 2008 to 2012 pursuant to the explicit approval given by the IRB on 21 January 2013 on the eligibility of the Company in claimingthe RIA amounted to RM1,765.2 million; and • The payment which had been made to IRB in December 2020 in respect of YAs 2016 and 2017 amounted to RM1,757.2 million which is disputed by IRB as detailed in Note 42(a). The Group and the Company have not recorded the potential additional tax liability arising from the tax impact if the RIA claimed is disallowed and the Company loses its litigation. The realisation of this tax recoverable and the potential tax liability are dependent on the outcome of judgement on the RIA claims by the Special Commissioners of Income Tax (‘SCIT’) and by the Kuala Lumpur High Court, including the subsequent notice of appeal filed by IRB before the Court of Appeal. The Directors have performed an assessment on the tax recoverable of RM3,522.4 million and the potential tax liability of RM6,101.4 million based on legal view obtained from external legal counsel and the facts surrounding its RIA claims. The Directors have exercised judgement that there is sufficient evidence and case law to support the Company’s appeal against the Notices and no provisions to be recognised with regards to the potential tax liability. (ii) Deferred tax assets Deferred tax assets are recognised to the extent that it is probable that taxable profit