How to declare income?
17 years ago Client sold his shares in small business Canadian corporation to Mr. A. with the condition that Mr. A.'s business buy $150,000. of goods per year from client's new business until client turned 65 or retired. There was a buy out clause for 75,000 per year, available for the last four years of the contract if either party wanted out of the contract. Client triggered that buy out when he retired early and sold the "new" business to a 3rd party. Now he is getting $75,000. per year from 2016-2019.
How does he declare that amount on his tax return now that he no longer has the "new" business? Is it considered self employed business income (with no offsetting expenses) on which he has to pay and submit CPP?