Limitation for regular assessment under the Business Profits Tax Act must preserve the refund remedy and statutory scheme.

The Business Profits Tax Act assessment scheme required notice under section 11(1) to be issued within one year from the end of the chargeable accounting period, and regular assessment to be completed within four years. Reading the notice, escaped assessment and refund provisions together, the controlling Supreme Court authority held that an indefinite delay in regular assessment would undermine the refund remedy and defeat the statutory scheme. On that basis, the regular assessment had to be made within four years of the end of the chargeable accounting period, and the limitation question was answered in favour of the assessee; the remaining question was treated as academic.

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Issues: Whether the regular assessment under the Business Profits Tax Act had to be made within four years from the end of the chargeable accounting period.

Analysis: The assessment scheme under the Business Profits Tax Act had to be read with the provisions governing notice, escaped assessments and refund. The controlling Supreme Court authority construed the statutory framework to mean that notice under section 11(1) had to be issued within one year of the end of the chargeable accounting period and that the regular assessment had to be completed within four years. The absence of an express limitation for regular assessment did not permit an assessment after an unduly long delay, because that would make the refund provision ineffective and defeat the statutory scheme.

Conclusion: The regular assessment was required to be made within four years of the end of the chargeable accounting period, and the answer to the first question was in favour of the assessee.

Final Conclusion: The reference was answered on the limitation issue in favour of the assessee, and the remaining question was treated as academic and not answered.

Ratio Decidendi: Where the statutory scheme links notice, assessment and refund rights, the regular assessment must be completed within the period necessary to preserve the refund remedy and cannot be made after an inordinate delay in the absence of an express contrary provision.

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