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: An individual is ordained as a minister in an Anglican church. The individual's duties include administering a Chaplaincy Education Program for the XXXXXXXXXX , and to overview clinical and educational work of students in the XXXXXXXXXX region. In addition, the individual is the site Chaplain at a hospital. Furthermore, the individual is called upon by the Bishop on a regular basis to fill in parish vacancies. The individual's main source of income is from his position as Chaplain/Co-ordinator of Pastoral Education and Training. Does the individual qualify for the clergyman's residence deduction under paragraph 8(1)(c)?
Position: Yes.
Reasons:
As an ordained minister of the Anglican Church, the individual meets the status test of paragraph 8(1)(c). In addition, He meets the function test. According to his job description and other information submitted, one of his duties as Chaplain of a hospital is the delivery of pastoral services to patients at the hospital. This includes visitation of the sick, Baptisms, Funerals and Memorial Services and Marriage ceremonies. 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.
September 24, 1998
XXXXXXXXXX Taxation Service Office HEADQUARTERS
XXXXXXXXXX G. Moore
T1 Client Services 952-1506
7-981735
XXXXXXXXXX Paragraph 8(1)(c)
We are writing in reply to your memo of June 26, 1998, in which you ask for our opinion concerning whether XXXXXXXXXX is entitled to a clergyman's residence deduction under paragraph 8(1)(c) of the Income Tax Act (the "Act").
XXXXXXXXXX
A job description for the position of Chaplain/Co-ordinator of Pastoral Education and Training states that the incumbent is "responsible for the provision of coordination of all pastoral education and training on all sites; oversees the work of adjunct volunteer care givers; acts as an educational resource in specific areas of pastoral expertise; is fully involved in regional activities related to designated area of expertise". In addition, the job description indicates that the incumbent is:
1. Responsible, on training sites, for the delivery of pastoral services to patients, their family members, and the facility staff as requested from or referred to students, trainees and residents.
2. To co-ordinate the pastoral ministry of volunteer visitors and community clergy at the designated site, and to co-ordinate lay pastoral training sector wide.
3. To provide appropriate educational offerings to staff groups, the clergy and pastoral volunteers as required and requested.
4. To provide regional involvement and support in the area of designated regional commitment.
In addition, XXXXXXXXXX has included a copy of a job description of a XXXXXXXXXX. According to the summary of the job description, the incumbent in that position is "responsible for the provision of coordination of all pastoral services on designated site; oversees the work of adjunct volunteer caregivers; acts as educational resource in specific areas of pastoral expertise; is fully involved in regional activities related to designated area of expertise".
As you know, 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 a full-time administrative service by appointment of a religious order or religious denomination (the "function" test). On the basis that XXXXXXXXXX is an ordained minister of the Anglican Church, he would meet the status test. The issue, then, is whether he meets the function test.
Based on the information available, it appears that XXXXXXXXXX continues to serve as a Chaplain of the XXXXXXXXXX and to fill in as a Parish Priest when called upon to do so even though his primary function is that of Co-ordinator of Clinical Pastoral Education. Accordingly, XXXXXXXXXX cannot be considered to be "engaged exclusively in full-time administrative service".
The remaining issue to be reviewed is whether or not he is "in charge of or ministering to a diocese, parish or congregation." 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. In Zylstra Estate et al. v. The Queen, (94 DTC 6687), the court held that 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 purposes, it will not qualify as a congregation for the purposes of paragraph 8(1)(c) of the Act, 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.
Based on a review of XXXXXXXXXX job descriptions and information submitted with his request, XXXXXXXXXX appears to be performing pastoral services at XXXXXXXXXX is his capacity as a chaplain. Accordingly, in our view, if XXXXXXXXXX does in fact perform pastoral services at the XXXXXXXXXX, in his capacity as chaplain, as outlined in his job description, he would meet the function test. Therefore, having met both the status and function tests, he would qualify for the deduction under paragraph 8(1)(c) of the Act, subject to the limits provided therein.
For your information a copy of this memorandum will be severed using the Access to Information Act criteria and placed in the Legislation Access Database (LAD) on the Department's mainframe computer. A severed copy will also be distributed to the commercial tax publishers for inclusion in their databases. The severing process will remove all material that is not subject to disclosure including information that could disclose the identity of the taxpayer. Should your client request a copy of this memorandum, they can be provided with the LAD version or they may request a copy severed using the Privacy Act criteria which does not remove client identity. Requests for this latter version should be made by you to Jackie Page at 613 957-0682. The severed copy will be sent to you for delivery to the client.
We trust our reply will be of assistance in this matter.
J. Wilson
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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