http://decision.tcc-cci.gc.ca/tcc-cci/decisions/en/item/100603/index.do 
Zhu v. The Queen (January 20, 2015 – 2015 TCC 16, Woods J.).
Précis: This is a case involving Mr. Zhu, a non-resident former employee of a Canadian company, who was granted stock options of that company during his employment. The benefit included in his income in 2008 from the exercise of the options was $1,667,070. He subsequently disposed of the shares in 2008 at a significant loss at a time when he was not a resident of Canada. Mr. Zhu, who was self-represented, argued that the loss was on income account and should be deductible in computing his income for 2008. The Court held that since he did not carry on any business in Canada at the date the shares were disposed of the loss, even if it were on income account, was not deductible in computing his income in Canada.
Decision: This is a case involving a non-resident former employee of a Canadian company who was granted stock options of that company during his employment. The benefit included in his income in 2008 from the exercise of the options was $1,667,070. He subsequently disposed of the shares in 2008 at a significant loss:
1. The appellant was the CFO of Canadian Solar Inc. (“CSI”) from 2005 to June 6, 2008.
2. Effective June 6, 2008, the appellant resigned from CSI.
3. After June 6, 2008, the appellant ceased to be a resident of Canada for income tax purposes.
4. During his employment with CSI, the appellant was granted the option to purchase 116,000 shares.
5. The option to purchase the shares expired 90 days after the appellant ceased to be employed by CSI.
6. The appellant exercised his option to purchase shares in 2008.
7. When the appellant exercised his options, the exercise price was $2.12 US/share.
8. On May 19, 2008, he purchased and immediately sold 5,100 shares.
9. On September 4, 2008, he purchased 53,150 shares. The appellant sold those shares in November 2008.
10. On September 4, 2008, CSI shares were trading at in and around $27.55 US/share.
11. The appellant sold the 53,150 shares in two transactions:
(i) On November 17, 2008, he sold 25,000 shares at a price of $5.9065 US/share;
(ii) On November 18, 2008, he sold 28,150 shares at a price of $5.3658 US/share.
12. The sole issue to be determined is whether for the purpose of computing his Canadian income tax for 2008, the appellant is entitled to deduct a loss of $1,247,657.44 in respect of the CSI shares he sold in November.
Mr. Zhu, who was self-represented, argued that the loss was on income account and should be deductible in computing his income for 2008. The Court held that since he did not carry on any business in Canada at the date the shares were disposed of the loss, even if it were on income account, was not deductible in computing his income in Canada:
[8] The conclusion that I have reached is that the losses cannot be deducted against other types of income, regardless of whether they are held on business or capital account.
[9] First, this Court does not have the authority to give relief simply on grounds of fairness or equity. This is a matter for Parliament, not the Courts.
[10] Second, if the shares are held on capital account, the Act does not permit the losses to be deducted against other types of income.
[11] Finally, if the losses are business losses, they may not be deducted because Mr. Zhu was a non‑resident of Canada and the losses did not arise from a business carried on by him in Canada.
[12] In light of these conclusions, it is not necessary to decide whether the shares were held on capital or business account. I do not propose to discuss this issue.
The appeal was accordingly dismissed but the Court exercised its discretion not to award costs since there were some deficiencies in the Crown’s Reply that might have misled Mr. Zhu.