Principal Issues: Whether a lump sum payment in respect of a loss of employment, made by a resident of Canada to a non-resident of Canada who had been seconded to the payer's non-resident subsidiary, is subject to Canadian tax pursuant to Part I and Part XIII?
Position: Part I - No; Part XIII - Yes.
Reasons: Part I - A retiring allowance, as defined in subsection 248(1), would not be considered remuneration described in subparagraph 115(2)(e)(i) of the Act; Part XIII - 212(1)(j.1) would apply, however, the Convention with France would give relief.