On 8 August 2008, Departmental Instruction No. Paw. 135/2551 (2008) was issued to clarify the deductibility of investment losses where a parent company, which is also the creditor of its subsidiary, subscribed for new shares issued by its loss-making subsidiary in the course of a business turnaround. Paw. 135/2551 (2008) explains that the amount of subscription for new shares which is not refunded to the parent company will be deductible as a tax expense, only insofar as it does not exceed the amount of debts that the subsidiary owes to the parent company, and provided that the following conditions are...