16 November 2000 Internal T.I. 2000-0035067 F - ALLOCATION DE RETRAITE -- summary under Paragraph 7(1)(b)

Regarding a terminated employee who received damages (pursuant to a settlement of his action) as compensation for lost benefits under the stock option plan, the Directorate indicated that if the stock option agreement provided that the right to the option benefits was forfeited in the event of termination of employment, the related damages were a retiring allowance rather than being taxable under s. 7(1)(b).