Ahmad v. The Queen, 2002 DTC 2065 (TCC)

Prejudgment interest received by the taxpayer as part of a damages award for tortious interference by a third party with his employment contract was found not to be interest because, until the time of judgment against the third party, there was no liquidated amount to which he was entitled and, therefore, no amount to which interest could be related.

The taxpayer was wrongfully demoted and stripped of his significant responsibility by his employer at the instigation of a major customer (Ontario Hydro). Two years later, the taxpayer sued Ontario Hydro, and a year after that he was dismissed by his employer when he sued it as well.

Damages received by him from Ontario Hydro, which were characterized as being in respect of the tort of inducement of breach of his employment contract with his employer, were found not to be in respect of the ultimate loss of his job but, rather, in respect of the stripping of his responsibilities as a nuclear researcher, and therefore were not "in respect of" loss of employment, a phrase which suggested to Miller T.C.J. "a primary purpose test".

Miller T.C.J. also indicated that he did not view damages for construction dismissal as constituting a retiring allowance.