Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Is a Director of Creative Arts entitled to the clergy residence deduction under 8(1)(c)?
Position: No
Reasons: Does not meet status tests
2007-022842
XXXXXXXXXX C. Tremblay, CMA
(613) 957-2139
April 20, 2007
Dear XXXXXXXXXX:
Re: Clergy Residence Deduction
This is in reply to your electronic message of March 22, 2007, wherein you included your job description and an update of your employment file at XXXXXXXXXX. You disagree with the March 1, 2007 response we sent to XXXXXXXXXX stating that the Director of Creative Arts would not qualify for the clergy residence deduction.
The particular circumstance in your letter on which you have asked for our views is a factual situation. As explained in Information Circular 70-6R5, it is not this Directorate's practice to comment on transactions involving specific taxpayers other than in the form of an advance income tax ruling. However, we have considered your enquiry and provide the following comments, which are of a general nature only.
As stated in paragraph 3 and 4 of Interpretation Bulletin IT-141R (Consolidated), whether or not a person meets the status test and is a "member of the clergy" or a "regular minister" depends upon the structure and practices of the particular church or religious denomination. In most established Christian churches, a regular minister would also be an ordained minister. However, whether ordained or not, the individual should be authorized to perform all of the duties or at least most of the duties of a regular minister. Accordingly, the individual must be authorized or empowered to perform spiritual duties, conduct religious services, administer sacraments and carry out similar functions. Religious functions may include participation in the conduct of religious services, the administration of some of the rituals, ordinances or sacraments, and pastoral responsibilities to specific segments of the religious organization. The position should also be one of some permanence.
Accordingly, from the review of your job description and the terms of your employment, in our view, you would not meet the status test and would not be entitled to a deduction under paragraph 8(1)(c) of the Act. We have not considered the function test further to our March 1, 2007 response, as, in our view, the status test has not been met.
We trust these comments will be of assistance.
Yours truly,
Roberta Albert
For Director,
Financial Sector and Exempt Entities Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 2007
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 2007
Email this Content