Strange. I just tried this:

    sub doStuff {
        my $toggle = initToggle( 1 );
        blah($toggle);
    }

    sub blah {
        my $t = shift;
        for ( 1..6 ) { print &$t . "\n" }
    }
[download]

and it worked just fine.

Are you doing something differently than the above? Are you storing your code ref as the key in a hash, then pulling it back out and trying to use it again? If so the ref will be stringified and thereafter useless as a code ref. In fact, any stringification of your reference will render it unusable.