The
Assistant
Chairman:—This
is
the
appeal
of
Patrick
D
McTaggart-
Cowan
from
an
income
tax
assessment
in
respect
of
the
appellant’s
1968
taxation
year.
The
appellant,
who
is
presently
the
Executive
Director
of
the
Science
Council
of
Canada,
was
at
the
time
pertinent
to
this
appeal
the
President
of
Simon
Fraser
University.
In
September
1963
the
appellant
accepted
the
appointment
as
the
first
President
of
Simon
Fraser
University.
It
was
the
appellant’s
understanding
that
his
appointment
was
to
continue
until
his
retirement
age.
However,
there
was
no
formal
contract
of
employment
and
the
minutes
of
the
Board
of
Governors
do
not
specify
the
duration
of
the
appellant’s
appointment.
There
arose
a
growing
disagreement
between
the
Board
of
Governors
and
the
chairman
of
the
Board,
on
the
one
hand,
and
the
President
and
the
Deans
of
the
Faculties
on
the
other,
as
to
how
the
University
should
be
administered.
On
May
31,
1968,
at
a
meeting
of
the
Board
at
which
the
appellant
was
present,
and
after
a
further
disagreement,
the
appellant
was
dismissed
as
President
of
Simon
Fraser
University
by
the
Board
of
Governors
and
was
forbidden
to
have
any
further
contact
with
the
University.
The
Board
of
Governors
offered
to
pay
the
appellant
$25,000
(one
year’s
salary)
which
the
appellant
refused.
Having
received
legal
advice,
the
appellant
claimed
$90,000
but
the
Board
of
Governors
refused
to
pay
him
any
more
than
one
year’s
salary,
ie
$25,000.
Of
this
sum
the
appellant
received
$14,583.31
in
1968
which
was
included
in
computing
his
income
for
that
year,
to
which
the
appellant
objected
on
the
grounds
that
the
amount
received
was
for
damages
and
should
not
be
taxable.
Damages
claimed
by
the
appellant
are
based
on
the
fact
that
his
understanding
was
that
his
appointment
as
President
of
the
University
was
to
continue
until
his
retirement
age—which
arrangement
was
not
complied
with
and,
secondly,
that
in
1968,
after
being
away
almost
five
years
from
his
profession
of
“meteorology”
it
would
take
him
some
two
years
of
study
to
become
once
again
proficient
in
his
profession.
The
appellant
claims
that
in
1968
he
was
no
longer
employable
as
a
meteorologist
and
could
not
get
another
university
appointment.
The
important
facts
of
this
appeal
are
that
the
appellant
on
the
advice
of
his
legal
adviser,
did
not
sue
the
university
for
damages
but
did
accept
the
equivalent
of
one
year’s
salary.
Under
the
circumstances
of
this
appeal,
it
would
be
most
difficult,
if
not
impossible,
for
anyone
to
hold
that
the
appellant’s
appointment
as
President
of
Simon
Fraser
University
was,
by
contract,
to
continue
until
his
retirement
age.
No
legally
valid
commitment
was
made
by
the
Board
of
Governors
as
to
the
duration
of
the
appellant’s
appointment.
In
the
absence
of
such
a
stipulation
in
the
appellant’s
contract
of
employment,
it
was
well
within
the
rights
of
the
Board
of
Governors
to
dismiss
the
appellant
for
any
reason
without
there
being
a
breach
of
contract
on
its
part
which
might
give
rise
to
the
claiming
of
damages.
Though
one
may
understand
and
sympathize
with
the
difficult
circumstances
in
which
the
appellant
found
himself
after
May
1968,
these
difficulties
cannot
be
considered
as
damages
for
which
the
Board
of
Governors
could
be
held
legally
responsible
and,
more
important,
they
are
not
the
reasons
for
which
the
Board
of
Governors
paid
the
appellant
the
equivalent
of
one
year’s
salary.
In
my
opinion
the
facts
of
this
appeal
indicate
clearly
that
the
Board
of
Governors,
because
of
its
disagreement
with
the
appellant,
decided
to
dismiss
the
latter
on
the
spot
and
pay
him
a
certain
amount
in
lieu
of
“notice
of
termination
of
employment”
which
was
considered
to
be
reasonable.
The
receipt
of
such
an
amount
is
not
on
account
of
damages
but
falls
squarely
within
the
general
taxation
rule
of
section
3.
It
comes
within
the
meaning
of
“other
remuneration”,
subsection
5(1),
and
within
the
meaning
and
intent
of
section
25
of
the
Income
Tax
Act.
I
conclude,
therefore,
that
the
amount
of
$14,583.31
received
by
the
appellant
in
1968
was
properly
included
in
computing
the
appellant’s
income
for
that
year.
The
appeal
is
dismissed.
Appeal
dismissed.
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