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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Clergymen's Housing Allowances
Position TAKEN:
Question of Fact.
Reasons FOR POSITION TAKEN:
Must meet status and function test in 8(1)(c) for allowance to be non-taxable
940705
XXXXXXXXXX D. Zion
Attention: XXXXXXXXXX
June 15, 1994
Dear Sir:
Re: Clergymen's Housing Allowance
We are writing in response to your letter of March 17, 1994 and the numerous telephone conversations (Fuoco/XXXXXXXXXX and Zion/XXXXXXXXXX) concerning the applicability of the clergyman's residence deduction to your situation.
As we understand it, the circumstances have changed such that a review of your situation is no longer required. However, you would like our general comments regarding this deduction. In the comments that follow unless otherwise stated, all statute references are to the Income Tax Act S.C. 1970-71-72, c.63 as amended, consolidated to June 10, 1993.
As stated in paragraph 8 of the enclosed Interpretation Bulletin IT-141: Clergymen's Residences , in general, a housing allowance (for a clergyman or any other employee) is included in employment income under paragraph 6(1)(a) of the Act. However, in certain circumstances, a clergyman may be entitled to a deduction under paragraph 8(1)(c) of the Act in respect of his residence. Generally, to be eligible for the deduction, the individual must first be a member of the clergy, a member of a religious order, or a regular minister of a religious denomination. Where one of these conditions is met, then the individual must be in charge of or ministering to a diocese, parish or congregation, or engaged exclusively in full-time administrative service by appointment of a religious order or religious denomination. The bulletin discusses these requirements in further detail.
Should your situation once again change and you would like to obtain a more definitive response, we suggest you provide all pertinent facts and documents to your local District Taxation Office which would be pleased to assist you.
Yours truly,
P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Legislative and Intergovernmental
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, 1994
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, 1994