My template looks like:
<xsl:template match="Section[@Type='32']">
	Before test<BR/>
	<xsl:if test='.=""'>
		Test OK!
		<BR/>
	</xsl:if>
	After test<BR/><BR/>
	<xsl:apply-templates select="*"/>
	<BR/>
</xsl:template>

<Section DocStruc="DS69871" Type="32" Level="1">
</Section>

Before test
Test OK!
After test

Before test
After test

When the ending tag is on the same row it works with Saxon as well.
<Section DocStruc="DS69871" Type="32" Level="1"></Section>

/Håkan
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