Létourneau v. The Queen, 2010 DTC 1098 [at at 3020], 2009 TCC 614 (Informal Procedure) -- summary under Subsection 118(7)

Upon his retirement as partner in a professional accounting firm, the taxpayer began to receive an annual allowance of $41,607 subject to an annual cost of living increase of up to 3% per annum, which was calculated based on the maximum number of units he had held in the partnership. Lamarre J. found that as the partnership agreement provided that retired partners would be allocated partnership income equal to their allowances (and also given that the payments to retired partners were limited to 15% of firm profits), the taxpayer was deemed by s. 96(1.1) to receive his allowances as a share of partnership profits. As s. 96(1.1) applied "notwithstanding any other provisions of this Act," it followed that the allowances were not eligible pension income.