The taxpayer was reassessed to include in his income a Registered Education Savings Plan benefit but with the CRA deducting a corresponding amount of unclaimed education‑related deductions. This resulted in a nil assessment for income tax, but $2.10 of interest was included on the assessment notice. On the taxpayer’s appeal, the Minister raised a preliminary objection that the taxpayer was contesting a nil assessment.
Boyle J dismissed the Minister’s objection, finding (at para 5):
On its face, the reassessment of the Appellant was not a nil assessment. An amount of interest was assessed by the CRA in its reassessment of him. Assessed interest, as opposed to post-assessment accrued interest, forms part of the assessment. As it is not a nil assessment, an appeal can proceed.