[The taxpayer, a corporate controller, was suspended with pay after alleging that management was manipulating the Canadian corporation's financial records in order to maximize bonuses paid to management. The taxpayer took a new job at a different corporation. He brought a complaint to the Canadian corporation's UK controlling corporation. The UK corporation paid him a total of $160,000 for constructive dismissal (his contract provided for such payment if he were in fact dismissed), for an award under UK whistleblower protection legislation, and for the Canadian corporation having misrepresented its financial position during the previous negotiations leading up to his having been hired.
The Minister claimed that the entire $160,000 was received in respect of loss of employment because, but for the loss of employment, no payment would have been made. Boyle J. found that $45,000 of the amount was attributable to a lost bonus and other benefits and in respect of how his termination had been handled (and hence a retiring allowance), with the balance being non-taxable amounts in respect of his other claims.