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
Do specialized minister such as the Worship Director and Christian Education within the Presbyterian Church qualify for the 8(1)(c) deduction?
Position TAKEN:
No
REASON FOR POSITION TAKEN
Not a regular minister of a religious denomination, or a member of the clergy and IT-141R
XXXXXXXXXX 2003-002646
C. Tremblay, CMA
957-2139
July 21, 2003
Dear XXXXXXXXXX:
Re: Clergy Residence Deduction
This is in reply to your letter requesting our opinion as to whether the Worship Director and the Christian Education Director meets both the status and function tests as required under paragraph 8(1)(c) of the Income Tax Act (the "Act") so as to be allowed the clergy residence deduction. Specifically, you as ask us whether an individual who is not an ordained minister and is not qualified to administer sacraments would qualify for the deduction under paragraph 8(1)(c) of the Act. You state that the particular individuals could be classified as "clergy" since they have been "set apart" for their ministries at the start of their service with the Congregation in a special service within the church.
The particular circumstance in your letter on which you have asked for our views is a factual situation. As explained in Information Circular 70-6R5, 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.
As stated in paragraphs 3 and 4 of Interpretation bulletin IT-141R (Consolidated), whether or not a person is a "member of the clergy" or a "regular minister" depends upon the structure and practices of the particular church or religious denomination. A "member of the clergy" is a person set apart from the other members of the church or religious denomination as a spiritual leader. It is not necessary that the process of appointment be referred to as ordination or that the appointment be by someone higher up in the ecclesiastical hierarchy; it may be done by the congregation itself. In most established Christian churches, a member of the clergy would also be an ordained minister. However, whether ordained or not, a member of the clergy should be authorized to perform all of the duties of a regular minister. Accordingly, a member of the clergy of a religious denomination must be authorized or empowered to perform spiritual duties, conduct religious services, administer sacraments and carry out similar functions. The position should also be one of some permanence.
Accordingly, in our view, the individuals holding the positions discussed in your letter would not be entitled to a deduction under 8(1)(c) of the Act.
We trust these comments will be of assistance.
Yours truly,
Steve Tevlin
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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