Authorised Firm must apply a risk weight in accordance with PIB chapter 4 as applicable, to deferred tax assets that do not rely on future profitability.
(2) For the purpose of (1), deferred tax assets that do not rely on future profitability comprise the following:
(a) overpayments of tax by the
Authorised Firm for the current year;
(b) current year tax losses of the
Authorised Firm carried back to previous years that give rise to a claim on, or a receivable from, a central government, regional government or local tax authority; and
(c) deferred tax assets arising from temporary differences which, in the event the
Authorised Firm incurs a loss, becomes insolvent or enters liquidation, are replaced, on a mandatory and automatic basis in accordance with the applicable national law, with a claim on the central government of the jurisdiction in which the Authorised Firm is incorporated which must absorb losses to the same degree as CET1 Capital instruments on a going concern basis and in the event of insolvency or liquidation of the Authorised Firm.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]