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
Does a specialized minister for family and children within the XXXXXXXXXX church qualify for the 8(1)(c) deduction?
Position TAKEN
No
REASON FOR POSITION TAKEN
Not a regular minister of a religious denomination, and IT 141R
XXXXXXXXXX 2001-006641
C. Tremblay, CMA
January 31, 2001
Dear XXXXXXXXXX:
Re: XXXXXXXXXX
This is in reply to your letter requesting that we confirm that XXXXXXXXXX meets both the status and function test as required under paragraph 8(1)(c) of the Income Tax Act (the "Act") in order for her to claim the clergy residence deduction.
During a telephone conversation with XXXXXXXXXX, (Tremblay/XXXXXXXXXX) of January 29, 2001, she informed us that she is specialized in family and children ministries with the XXXXXXXXXX church. XXXXXXXXXX also advised us that she is not an ordained minister and is not able to perform any sacraments of the XXXXXXXXXX church. Pursuant to paragraph 8(1)(c) of the Act, only a member of the clergy, a member of a religious order or a regular minister of a religious denomination meets the status test. Accordingly, XXXXXXXXXX does not meet the status test of paragraph 8(1)(c) of the Act. We did not discuss her specific duties as there was no need to establish the function test because she does not meet the status test of paragraph 8(1)(c) of the Act.
In our view, and further to paragraphs 5 and 6 of Interpretation Bulletin IT-141R, a regular minister of a religious denomination must be authorized or empowered to perform spiritual duties, conduct religious services, administer sacraments and carry out similar functions. The individual should be authorized to perform all or at least most of the duties of a minister. Religious functions may include the 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 individual should also be formally appointed and recognized by a body or person with the legitimate authority to appoint or ordain ministers on behalf or within the denomination. The position of regular minister should also be one of some permanence.
We trust these comments will be of assistance.
Yours truly,
Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
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