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 full-time administrator in a bible college with teaching duties qualify for the 8(1)(c) deduction?
Position TAKEN
Yes, provided the employee meets the status test and his full-time qualifying function require 35 hours or more.
REASON FOR POSITION TAKEN
Function appears to be "full-time administrative service"
2003-001477
XXXXXXXXXX C. Tremblay, CMA
(613) 957-2139
May 14, 2003
Dear XXXXXXXXXX:
This is in reply to your letter of April 16, 2003, wherein you asked whether you qualified for the clergy residence deduction under paragraph 8(1)(c) of the Income Tax Act (the "Act"). You specifically asked for a ruling based on the fact that effective XXXXXXXXXX, you will occupy an Administrative position at XXXXXXXXXX as XXXXXXXXXX. The position is full-time, however 2 hours per week teaching time during the academic year is involved in the position.
Written confirmation of the tax implications 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 70-6R5. However, we are prepared to provide the following comments, which are of a general nature and are not binding on the Canada Customs and Revenue Agency ("CCRA").
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").
An individual employed as an administrator who seeks the clergy residence deduction must meet the status test and be engaged exclusively in full-time administrative service by appointment of a religious order or a religious denomination. Under normal circumstances, we would expect that an administrator generally spend the equivalent of a traditional work week of 35 hours in fulfilling the administrative function in order to qualify for the deduction. Where the individual normally spends 35 hours or more a week at the administrative functions, the teaching responsibilities would not disqualify his or her claim.
We trust our comments are of assistance.
Yours truly,
Steve Tevlin,
For Director,
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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