Supreme Administrative Court allows loss reduction for employee stock options sold at a loss or allowed to lapse worthless.

The Supreme Administrative Court ruled that an employee who sold stock options at a loss or allowed them to lapse could deduct the loss from taxable income. The court found that the loss resulted from the acquisition and retention of the options, satisfying the requirements of the Income Tax Act. Consequently, the deduction was permitted despite the options having no residual value at the time of disposal.