14 September 2004 Internal T.I. 2004-0080911I7 - Swap-termination payments -- summary under Swaps

The CRA position that all amounts payable or receivable pursuant to an interest rate swap agreement (including a termination payment) will be considered to be on income account, reflects its "longstanding position regarding interest rate swaps ... based on the fact that the swap agreement is a separate legal contract (whether or not the swap is used as a hedge)" and is consistent with the decision in Shell (99 DTC 5699).