In January I reported that the Tax Court had held that the penalty provided by subsection 163(2.1) of the Income Tax Act did not apply if the corporation filing the return did not have taxable income (see Goar, Allison & Associates Inc. v. The Queen, 2009 TCC 174).
The Tax Court, in another informal procedure ruling, just contradicted itself on this point. See Exida.Com Limited Liability Company v. The Queen, 2009 TCC 373. Justice Woods felt unable to follow her colleague in Goar because of the historical context for the enactment of 163(2.1).