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 social action commission within the Roman Catholic 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 2001-006990
C. Tremblay, CMA
March 14, 2001
Dear XXXXXXXXXX:
Re: Clergy Residence
This is in reply to your letter requesting our opinion as to whether you met both the status and function tests as required under paragraph 8(1)(c) of the Income Tax Act (the "Act") in the years you indicated so as to be allowed 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 70-6R4, 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.
Only a member of the clergy, a member of a religious order or a regular minister of a religious denomination meets the status test pursuant to paragraph 8(1)(c) of the Act.
In our view, and further to paragraph 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.
In your letter, you state that you had been appointed by the Bishop to the position of Director of the Social Action Commission but that you were not an ordained minister. Consequently, you would not be a regular minister, as you would not have been able to perform most of the sacraments of the Roman Catholic Church. Accordingly, in our view, you do not meet the status test of paragraph 8(1)(c) of the Act.
We trust these comments will be of assistance.
Yours truly,
Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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