12 February 2002 External T.I. 2002-0120755 - BIBLE COLLEGES-RELIGIOUS ORDER

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

Is an organization that operates a Bible College presumed to be primarily educational or are they subject to the same 6 criteria developed by the courts in determining whether an organization is a religious order.

Position TAKEN
Same 6 criteria will be applied

REASON FOR
Paragraph 9 of IT 141R

XXXXXXXXXX 2002-012075
C. Tremblay, CMA
957-2139
February 12, 2002

Dear XXXXXXXXXX:

Re: Technical Interpretation Request:

Paragraph 8(1)(c) of the Income Tax Act (the "Act")-Religious Orders

This is in reply to your letter of February 8, 2002 regarding the above-noted subject. We confirm that the six criteria that have been developed by the courts in establishing whether an organization is a religious order will be applied by the Canada Customs and Revenue Agency in determining whether that organization is or is not a religious order. Whether or not the organization operates a Bible college is not relevant in this determination.

Although a religious order may have other objects within the overall context of its religious purpose such as education, we are of the view, that an educational institution, in and by itself, is not a religious order or a religious denomination and that Zylstra and McRae (94 DTC 6487 FCTD) supports this position. However, the decision regarding whether or not an organization is a religious order will only be made on a case-by-case basis and only after applying the six criteria developed by the courts and set out in paragraph 9 of Interpretation Bulletin IT-141R (Consolidated).

We trust our comments are of assistance.

Yours truly,

Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch