Nottawasaga Inn - Tax Court of Canada found that an interest-only assessment could not be appealed

A taxpayer was reassessed for its 2007 taxation year, and then requested loss-carrybacks to reduce the income for that year to nil.  Pizzitelli J found that, because the resulting reassessment of the taxpayer's 2007 year to eliminate the taxes for that year (but not the interest) was a "nil assessment," the taxpayer could not appeal the interest amount included in that reassessment notice.  His reasoning was that:

• a "nil assessment" actually means a notice under s. 152(4) that "no tax is payable," which is not technically an assessment - and which cannot be appealed;
• an assessment for interest or penalties is distinct from an assessment for tax; and
• an interest assessment can only be appealed on computational grounds (not in issue here) or as a result of appealing the underlying tax assessment (and there was no underlying assessment - only a nil assessment).

Scott Armstrong.  Summary of Nottawasaga Inn Ltd. v. The Queen, 2013 TCC 377 under s. 169(1).