A former Montreal stripper has won her case against the Canada Revenue Agency, convincing a Tax Court that nearly $2 million from a client was a gift and so couldn't be taxed.

With Thursday's decision, Martine Landry won the first round of her battle to keep all of the $1.3 million in cash, two cars, a bar, a house, furs and jewels — a total value of $2 million — she received from a businessman she knew for 11 years.

The cash and items were given to her over a period of five years.

The Canada Revenue Agency and Revenue Quebec viewed the sums as income so they each sent Landry income tax bills for $400,000 and $643,000 respectively.

Tax Court of Canada Judge Robert Hogan on Thursday agreed with Landry that the sums were gifts and therefore not taxable under federal law.

Her case against Revenue Quebec is still before the Quebec court.

Hogan said the relationship between Landry and the businessman developed to the point where they were like father and daughter and Canada Revenue Agency was wrong to treat the gifts as income for tax purposes.

Landry's lawyer said he's pleased with the ruling, adding that he and Landry hope the decision will influence the decision involving Revenue Quebec.