Forest v. Canada, 2008 DTC 6506, 2007 FCA 362 -- summary under Retiring Allowance

The Court varied a finding of the Tax Court Judge that the full $152,969 received by the taxpayer was a retiring allowance and instead found that only $23,050 of the sum was a retiring allowance in light of the policy of his employer to pay severance of one month for each year of employment. Accordingly, the balance of the sum received by him was an exempt receipt that was in respect of his action against his employer for harassment.