9 May 2006 Internal T.I. 2006-0175551I7 F - Traitement fiscal d'un montant forfaitaire -- summary under Subsection 6(15)

A member of the Canadian armed forces who had been injured and in receipt of disability benefits from the Department of Veterans Affairs and the Service Income Security Insurance Plan administered by the Maritime Life Assurance Company ("Maritime Life") was found to have received a lump sum corresponding to the present value of the taxpayer's right to receive future benefits under such plans as a tax-free capital payment, but to have received a taxable benefit under s. 6(15) when a rehabilitation loan was forgiven.