A settlement agreement signed by the taxpayer in settlement of her grievances launched with the assistance of her union stated that she resigned from her position, that the union and the taxpayer withdrew all the grievances, and that the employer agreed to pay her a lump sum and released the claim for a portion of the excess amount of wage loss insurance that she had received. Regarding the portion of the excess wage loss insurance that she was required to repay, the Directorate stated:
It should be noted that the $XXXXXXXXXX of wage-loss insurance could give rise to a deduction from the taxpayer's income from office and employment as a reimbursement of remuneration pursuant to paragraph 8(1)(n) if the amount had otherwise been previously included in the taxpayer's income from office and employment.