16 September 1994 External T.I. 9413745 - RELIGIOUS ORDER-WHETHER QUALIFIES

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:

whether a particular organization qualifies as a "religious organization" for purposes of ss. 110(2) of the Act

Position TAKEN:

insufficient information submitted. general comments only given

Reasons FOR POSITION TAKEN:

941374
XXXXXXXXXX Sandra Short

September 16, 1994

Dear Sirs:

Re: Request for Religious Order status for XXXXXXXXXX

This is in reply to your request dated May 12, 1994 which asks that the Department confirm that XXXXXXXXXX qualifies as a Religious Order under the Income Tax Act (the Act). In our telephone conversations of June 29 and July 20 (XXXXXXXXXX/Short), you advised that the XXXXXXXXXX is not currently seeking charitable or not-for-profit status. It is our understanding that the request for "religious order" status is being made for the purposes of subsection 110(2) of the Act, which subsection permits an individual who is a member of a religious order and has taken a vow of perpetual poverty to deduct certain amounts paid by him or her to the order in computing taxable income for a taxation year.

As we have not received a reply to our request for additional information made on June 29, 1994, we are not in a position to provide an opinion that XXXXXXXXXX may qualify as a religious order or that a member may be considered a member of a religious order. We have reviewed your submission and while it appears that the XXXXXXXXXX may be considered to have a religious orientation according to the objects as set out in the charter of incorporation and the XXXXXXXXXX Doctrinal Declaration, the status of its members is not clear to us. We offer the following general comments which relate to religious orders and members of religious orders which may be of assistance to you.

Whether or not an organization is a religious order is a question of fact which must be determined on a case by case basis. However, an essential prerequisite to being a religious order is the existence of vows or a specific religious discipline. This means that the organization's primary purpose is to preach the gospel and its members are bound to certain religious, moral and social regulations and discipline which would distinguish them from members of other organizations.

In our view, the term "member of a religious order" is not synonymous with member of a church or member of a congregation or member of a particular religious following. To be a member of a religious order goes beyond merely claiming one's belief in the principles of a particular doctrine of faith. Usually, an individual becomes a member of a religious order after receiving specialized religious training and, once a member, is bound by a set of religious, moral and social rules and discipline as referred to above. In addition, the member is charged with carrying out the objectives of his religious organization and is thus entitled to officially perform the rites of faith such as preaching the gospel, officiating at formal services and ceremonies and so forth. The most noted example of a religious order is a monastic society or fraternity, such as, an order of monks or friars.

Should you wish to make a further submission to request our views in respect of XXXXXXXXXX possible status as a "religious order" and its members as "member(s) of a religious order", we request that you forward the XXXXXXXXXX articles of faith and any pamphlets of general information which may be made available to the public or potential members. A statement which clearly outlines the training required to be completed by members or potential members and as well as a statement of duties, entitlements and expectations of members would be helpful.

We trust our comments will be of assistance to you.

Yours truly,

P.D. Fuoco
for Director
Business and General Division
Rulings Directorate
Policy and Legislation Branch