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.
Principal Issues: Whether an amount received by a member of the clergy for conducting a wedding or funeral is taxable.
Position: Generally yes.
Reasons: If a clergy member receives an amount for conducting a wedding or a funeral, he or she must include all such amounts in employment income for the year received. A taxpayer is also required to include in employment income all director's or other fees received in the year.
March 11, 2005
Mr. Michel Dorais, Commissioner of the Canada Revenue Agency (CRA), has asked me to reply to your correspondence of January 27, 2005, regarding the taxation of an amount received by a member of the clergy for conducting a wedding or a funeral.
As a general rule, the Income Tax Act requires that an employee include in income all the salary, wages and other remuneration, including gratuities, that he or she receives from an office or employment. The Act also requires that a taxpayer include in employment income all director's or other fees received in the year. Therefore if a clergy member receives an amount for conducting a wedding or a funeral, he or she must include the amount in employment income for the year it was received. However, if a clergy member donates the amount to the church, there may be an offsetting charitable donation tax credit available.
I appreciate the opportunity to respond to your concerns on this important issue.
Deputy Assistant Commissioner
Tax and Regulatory Affairs
Policy and Planning Branch
February 24, 2005
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