After the taxpayer was wrongfully dismissed, an arbitrator ordered that the taxpayer be reinstated and be paid his back pay. The corporate employer wrongfully refused to reinstate the taxpayer, and the taxpayer obtained a court order for damages, reimbursement of legal costs and interest.
In finding that the damages were a retiring allowance, the Directorate stated that the damages were:
awarded to the taxpayer to compensate for the wrongful refusal to reinstate is in respect of the taxpayer's loss of employment.