Monsieur (whose was in arrears in his child support obligations) and Madame signed a written agreement whereby they agreed that Monsieur would pay Madame a lump sum in full satisfaction of past and future child support obligations, and that Madame was to reimburse Monsieur if he became obligated to pay child support. In finding that such sum was not deductible to Monsieur pursuant to s. 60(b) and was not to be included in Madame's income pursuant to s. 56(1)(b), CCRA referred to its position in IT-530, para. 22 that a lump sum payment is not considered to be a support amount (as defined in s. 56.1(4)) where it is a lump sum payment made to obtain a release from a liability imposed by an order or agreement, whether such liability be in respect of arrears of maintenance payments, future payments, or both, and stated:
[T]he lump sum payment discharged Monsieur from his future obligation to pay periodic allowances as well as from his obligation in respect of arrears. … Monsieur was in fact released from any future obligation to pay support under the written agreement, since Madame was obliged to reimburse him for any subsequent support payments. We can therefore conclude that the lump-sum payment effectively relieved Monsieur of a future obligation and was not support.