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 parish nurse 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 2001-009152
C. Tremblay, CMA
July 17, 2001
Dear XXXXXXXXXX:
Re: Clergy Residence
This is in reply to your letter of June 30, 2001, requesting our opinion as to whether a Parish Nurse is allowed the clergy residence deduction pursuant to paragraph 8(1)(c) of the Income Tax Act (the "Act").
The particular circumstance in your letter of 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.
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).
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.
In your letter, you state that the Parish Nurse position will be binding with the church constitution, officially installed by the church board and the individual holding the position will be a member of the pastoral team of the church. In the information you provide (A Discussion Paper- June 2000) the position of Parish Nurse is considered a blending of nursing and pastoral care. However, we note that the Parish Nurse won't be involved in preaching or baptizing or able to perform most of the duties of a regular minister of the Church. Accordingly, in our view, a Parish Nurse does not meet the status test of paragraph 8(1)(c) of the Act and is not eligible for the clergy residence deduction.
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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