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 willbe available against which the deductible temporary differences or unused tax losses can be utilised. This involves judgement regarding the future financial performance of the particular entity in which the deferred tax asset has been recognised, as disclosed in Note 12. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 219 4 CRITICAL 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) (f) Post-employment employee benefits The Group and the Company provide both Retirement Benefit Plan and Post-Retirement Medical Plan for certain employees. The present value of the employee benefits obligations depends on a number of factors that are determined on an actuarial basis using certain assumptions. The key assumptions used in determining the net cost/(income) for the employee benefits include discount rate, medical claim inflation rate and salary increment rate. Any changes in these assumptions will impact the carrying amount of employee benefits obligations, as disclosed in Note 24. • Discount rate The Group and the