Is a settlement made to buy out a periodic obligation?

Canada (Federal), Canada

The following excerpt is from Benham v. The Queen, 2006 TCC 410 (CanLII):

MNR v. Armstrong, supra, was a case of a cash settlement made to buy out a periodic obligation. This is not the case here. The payment is not being made here to buy out anything it is just to pay the periodic payments.

In Widmer v. Her Majesty the Queen, supra, the amount owing was considered as a buy out. In this case the amount was based on changes in circumstances and this reflects the amount owing based on the income of the support payor. Therefore, the payment was not a capital payment but one composed of periodic payments.

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