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 CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: Does a minister who becomes disabled and no longer performing subparagraph 8(1)(c)(ii) duties still eligible for the clergy residence deduction?
Position: yes
Reasons: the minister has not retired - being on disability or sick leave would not exclude the deduction
XXXXXXXXXX 2002-011786
Shaun Harkin, CMA
February 28, 2002
Dear XXXXXXXXXX:
Re: Technical Interpretation Request: Clergy Residence Deduction
This is in reply to your letter of January 7, 2002 wherein you requested our views on whether you are entitled to the Clergy Residence deduction when the following conditions exist:
- you are XXXXXXXXXX Priest in good standing with your diocese
- since XXXXXXXXXX you have been unable to perform your duties as a Priest because you have become disabled
- you are currently under treatment and hope to return to work in the future
- in XXXXXXXXXX you began receiving a disability salary from your church and in XXXXXXXXXX you began to receive a Canada Pension Plan disability pension
- you have not retired and are not in receipt of a retirement pension
You also enquire as to how form T1223, Clergy Residence Deduction, should be completed if you are entitled to the deduction.
Written confirmation of the consequences inherent in particular transactions are given by this directorate only where the transactions are proposed and are the subject matter of an advance ruling request submitted in the manner set out in Information Circular 70-6R4. If, however, the particular transactions are partially completed or completed, the enquiry should be addressed to the relevant Tax Services Office. Notwithstanding the foregoing, we are providing the following comments.
In order to claim the clergy residence deduction a taxpayer must satisfy subparagraphs 8(1)(c)(i) and (ii) of the Income Tax Act (the "Act"). Subparagraphs 8(1)(c)(i) and (ii) of the Act read as follows:
"Clergy residence - where, in the year, the taxpayer
(i) is a member of the clergy or of a religious order or a regular minister of a religious denomination, and
(ii) is
(A) in charge of a diocese, parish or congregation,
(B) ministering to a diocese, parish or congregation, or
(C) engaged exclusively in full-time administrative service by
appointment of a religious order or religious denomination".
In our view, provided a member of the clergy otherwise satisfied subparagraph 8(1)(c)(ii) of the Act prior to becoming disabled, the fact that a member of the clergy is unable to continue to perform any of the duties stated in subparagraph 8(1)(c)(ii) of the Act due to a disability or illness and has been granted disability or sick leave by his/her employer would not, in and of itself, exclude the clergy member from claiming the clergy residence deduction.
Your employer should indicate for questions 3 and 4 on form T1223 the duties that you would perform and your job title but for your disability.
The foregoing comments represent our general views with respect to the subject matter. As indicated in paragraph 22 of Information Circular 70-6R4, the above comments do not constitute an income tax ruling and accordingly are not binding on the Canada Customs and Revenue Agency. Our practice is to make this disclaimer in all instances in which we provide an opinion.
We trust the above comments are of assistance.
Yours truly,
Steve Tevlin
for Director
Partnerships Section
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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