the merits of the cases, the Directors are of the opinion that no provision is required in the financial statements for the potential tax liability up to the reporting date. We focused on this area due to the inherent uncertainties involved in the outcome of judgement on the RIA by the Special Commissioners of Income Tax and by the Kuala Lumpur High Court, including the subsequent notice of appeal filed by the IRB before the Court of Appeal. We performed the following audit procedures: • Evaluated the Directors’ assessment on the basis of recoverability of the tax recoverable of RM3,522.4 million in respect of RIA and the potential tax liabilities of RM6,101.4 million in respect of RIA by the IRB by assessing the independent legal confirmations obtained from management’sexternal legal counsel; and • Examined the correspondence between the Company and the tax authority and assessed the matters in dispute based on advice from our tax experts to review the basis of applying the relevant tax laws. Based on the procedures performed above, we did not find any material exceptions to the Directors’ judgement in the treatment of the tax recoverable balance and the potential tax liabilities. INDEPENDENT AUDITORS’ REPORT To The Members of Tenaga Nasional Berhad (Incorporated In Malaysia) (Registration No. 199001009294 (200866-W)) TENAGA NASIONAL BERHAD Integrated Annual Report 2023 366 REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED) Key audit matters (continued) Key audit matters How our audit addressed the key audit matters Assessment on carrying value of post-employment benefits Refer to Note 4 – Critical Accounting Estimates and Judgements and Note 24 – Employee Benefits As at 31 December 2023, the Group recorded post-employment benefit asset of RM147.1 million and post-employment benefit liabilities of RM12,371.1 million while the Company recorded post-employment benefit asset of RM147.1 million and post-employment benefit liabilities of RM11,613.7 million. Management assessed the present value of