10 November 2002 Roundtable, 2002-0156845 F - CONGRE 2002 APFF -- summary under Subsection 7(1.1)

An employee exercised stock options in 2001 after the CCPC employer became a public corporation and the shares had substantially appreciated – and then sold the shares a year later when they had lost most of their value. CCRA confirmed that the employee realized a taxable benefit in 2002 based on the 2001 value, and realized a capital loss at the same time on the shares’ disposition.