ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below: (continued) (e) Estimation of income taxes (i) Income tax Income tax is estimated based on the rules governed under the Income Tax Act, 1967. Differences in determining the capital allowances, deductibility of certain expenses and subsequent utilisation of reinvestment allowance may arise during the estimation of the provision for income tax between tax calculated at the statement of financial position date, and the final submission to the tax authority as a result of obtaining further detailed information that may become available subsequent to the statement of financial position date. Where the final tax outcomeof these matters is different from the amounts that were initially recognised, such differences will impact the income tax provisions and deferred tax balance in the period in which such determination is made. The Group and the Company have recorded tax recoverable for which the Group and the Company believe that it is probable to be recovered. Where the final tax outcome of this matter is different from the amount 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