Last year I was contacted by a company that wanted me to take down an open-source software project I was working on. The generally tone was that they wanted to give me 10k CAD to take down the project and hand over my rights, otherwise they would sue me. I didn't have the resources for a drawn out lawsuit so I lawyer-ed up and accepted the offer.
After the lawyers were done hammering everything out, I owed about 12k CAD (lawyers are expensive). Does the 10k still need to be declared on my yearly taxes even though none of that money actually came to me? If so, does it get declared as income?