The Western Mail is reporting that the pay-off being considered by Carmarthenshire County Council could cost it £446,000. Interestingly, the paper also reports that Mr James would like the deal to come into effect in the tax year beginning on 1 April 2015, although the council's severance scheme ends on 31 March.
This would not be the first time that Mr James has sought to exploit the system to reduce his tax liabilities. Last year the council was forced to withdraw the controversial pension opt-out scheme after the Wales Audit Office ruled it was unlawful. Mr James later told council staff that the scheme had been withdrawn "for now".
Prior to that it came to light that he had paid himself around £20,000 immediately before the end of the 2011-12 tax year in his capacity as Returning Officer, even though nominations for the 2012 council elections had not closed.
No doubt other staff who have applied to leave under the council's severance scheme will be wondering whether they will also be offered ways of reducing their tax bills.
And all of this in a Labour-led council.