Thank you.
I think your question is at least a mix of policy and administration, but I will speak to what I draw from it in terms of the policy question.
In relation to stock options, the Income Tax Act taxes employee stock options as an employee benefit. Depending on the type of stock option, the full amount of the benefit may be taxable, or for certain qualifying options issued at market price at the time the option is granted, there may be reduced taxation of the benefit. But that benefit, whether full or partial, is taxed as employment income just as I am taxable on my employment income.
If the employee chooses to keep their stock, what the Income Tax Act does is treat that employee as it would anybody else who has used their income to make an investment in the market—that is, they're taxable on the employment benefit, and the gain or loss following that point in time is taxable at capital gains rates or is allowed as a capital loss.
Without speaking of particular taxpayers or particular corporations, I believe that's the treatment that arises in these cases. The employment income is taxable, and the consequent loss is treated as you or I would be treated if we had a loss.