Section 180.2

The inclusion of the German pension income of the taxpayer (which was exempt from tax under Article 18 of the Canada-Germany Convention) in s. 180.2(1)(b)(i) was not contrary to that Convention. Although, as a purely mechanical matter, pension income might thereby be regarded as being subject to tax, having regard to the scheme of the legislation as a whole the taxpayer's tax liability under section 180.2 affected solely and exclusively his Canadian pension income and the German pension was used strictly to calculate the amount of the tax owed which, in turn, represented a repayment of the Canadian benefits received by the taxpayer.