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:
Taxpayer attached a copy of a brief job description entitled "Director of Music" and asked for our opinion on whether the person filling this position would qualify for the clergy residence deduction.
Position TAKEN:
General comments provided only. Referred them to IT-141R and the comments pertaining to specialized ministries.
Reasons:
Insufficient information provided.
XXXXXXXXXX 2000-004604
Jim Wilson
Attention: XXXXXXXXXX
December 18, 2000
Dear XXXXXXXXXX:
Re: Clergy Residence Deduction
We are writing in reply to your letter of September 8, 2000, wherein you asked for our comments regarding the clergy residence deduction. More particularly, you have attached a copy of a brief job description entitled "Director of Music" and you have asked for our opinion on whether the person filling this position would qualify for the clergy residence deduction.
We have enclosed a copy of Interpretation Bulletin IT-141R for your reference.
IT-141R provides the Canada Customs & Revenue Agency's ("Agency") views on this topic. As mentioned in the Summary at the beginning of IT-141R, if an organization wants certainty as to how the guidelines apply to its structure and circumstances, it may request an advance income tax ruling. Information Circular 70-6R3 describes the advance income tax ruling process. You indicated in your letter that you would like our opinion on this issue in accordance with paragraph 22 of Information Circular 70-6R3. However, as stated in that particular paragraph, "When, however, a request for a technical interpretation relates to a specific proposed transaction, an advance income tax ruling rather than a technical interpretation must be requested". Paragraph 22 goes on to state that the Agency's tax services offices consider requests for written opinions on completed transactions and provide assistance on general matters. We have, however, provided some general comments.
As you are aware, generally, to be eligible for the clergy residence deduction, an individual must be a member of the clergy, a member of a religious order, or a regular minister of a religious denomination (the "status test"). When one of these conditions is met, 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 "function test"). Persons who meet the status test who perform specialized ministering may satisfy the function test depending on the significance of the ministry in the particular denomination. Recognized forms of specialized ministry can include congregational pastoral responsibilities for music. However, the role of music must assume an importance on that particular church that goes far beyond that of an organist or choir master of other churches (see paragraphs 16 & 17 of IT-141R).
We have not been provided any information regarding the individual who will fill the position of "Director of Music". We also have not been provided information regarding the organization (i.e. XXXXXXXXXX) as a whole and more particularly the role and prominence that music plays in the method of worship by members of that organization. Accordingly, we are not in a position to provide any definitive comments regarding whether the "Director of Music" will meet either the status test or the function test. Should you require further assistance from the Agency on this matter, we would suggest you contact your local tax services office and provide them with the relevant information. On the other hand, if the individual has not yet been appointed to the position of "Director of Music, we would be glad to review this matter in the context of a request for an advance income tax ruling as described above.
We trust our comments will be of some assistance.
Yours truly,
Jim Wilson
for Director
Business and Publications Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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