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 XXXXXXXXXX, qualifies for the deduction under paragraph 8(1)(c).
Position TAKEN:
Yes.
Reasons FOR POSITION TAKEN:
As an ordained rabbi, he meets the status test of paragraph 8(1)(c).
He also meets the function test: According to XXXXXXXXXX job description and related material submitted, he visits local and provincial hospitals and institutions to provide chaplaincy services to confined individuals. As such, he provides opportunities for patients to receive prayer and ritual, as well as counselling and religious guidance. Due to the exceptional nature of chaplaincies, our view, as indicated in paragraph 5 of IT-141, is that serving as a chaplain in the armed forces or with an institution is generally considered to be ministering to a congregation.
January 29, 1998
XXXXXXXXXX TAXATION CENTRE HEADQUARTERS
Office Audit M. Azzi
957-8953
Attention: XXXXXXXXXX
7-971151
XXXXXXXXXX - Paragraph 8(1)(c)
This is in reply to your memo of April 18, 1997, wherein you requested our views on whether the above-noted taxpayer qualifies for the clergyman's residence deduction provided in paragraph 8(1)(c) of the Income Tax Act.
We understand that XXXXXXXXXX is an ordained rabbi, and is employed as a chaplain under the XXXXXXXXXX. According to his job description and related material submitted, he visits local and provincial hospitals and institutions to provide chaplaincy services to confined individuals. As such, he provides opportunities for patients to receive prayer and ritual, as well as counselling and religious guidance.
Generally, to be eligible for the paragraph 8(1)(c) 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").
On the basis that XXXXXXXXXX is an ordained rabbi, he would meet the status test. The issue, then, is whether he meets the function test.
In our view, the activity of "ministering" to a diocese, parish or congregation includes the activities normally performed by a minister of the better known religious denominations. Furthermore, in our view, in accordance with Zylstra (94 DTC 6687), the phrase "diocese, parish or congregation" is generally intended to describe different organizational or institutional structures determined by religious denominations for the ongoing organized activities of their members on a regular basis. Although a gathering of persons may be a congregation for some purpose, it will not qualify as a congregation for the purposes of paragraph 8(1)(c), unless it is a gathering for shared religious purposes recognized by a religious denomination for its regular organizational religious activities. Finally, as indicated in paragraph 5 of IT-141, Clergymen's Residences, a congregation is not defined by territorial boundaries nor by the number of people gathered together in one place.
Based on the above, in our view, a congregation may comprise members who participate as members in other congregations. It is also our general view, (as supported by Zylstra) that a particular congregation must be recognized by (i.e., be a subunit of) a denomination. However, due to the exceptional nature of chaplaincies, our view, as indicated in paragraph 5 of IT-141, is that serving as a chaplain in the armed forces or with an institution is generally considered to be ministering to a congregation. Accordingly, provided that XXXXXXXXXX does in fact perform pastoral services at the various hospitals and institutions, in his capacity as a chaplain as outlined in his job description with XXXXXXXXXX, he would, in our view, meet the function test. Having met both the status and function tests, he would therefore qualify for the deduction under paragraph 8(1)(c), subject to the limits provided therein.
We trust that these comments will be of assistance.
John F. Oulton
Section Chief
Business, Property and Employment Section II
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1998
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1998
Email this Content