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: Does taxpayer meet the function and status test such that he can avail himself of the 8(1)(c) deduction?
Position: It appears that he does.
Reasons: Provided the individual meets the status test, and provided he meets the function test as a result of 1) The individual is a minister and is engaged exclusively in full-time administrative service (paragraph 18 requires the function to be full-time) appointed by a religious organization (paragraph 20 of IT-141R) or
2) it is also arguable that the individual could be considered to be ministering to a congregation.(see Koop, Klassen & Rushton (Youth for Christ Employee)
XXXXXXXXXX 2000-006144
C. Tremblay, CMA
March 2, 2001
Dear XXXXXXXXXX:
Re: Clergy's Residence Deduction
This is in reply to your letter of September 18, 2000, wherein you provided us additional information with respect to how your position meets both the status and function test under paragraph 8(1)(c) of the Income Tax Act (the "Act"). You refer to Interpretation Bulletin IT-141R - Clergy Residence Deduction and have advised us that, in your opinion, you satisfy both the status and function test. We apologize for the delay in our response.
You state that you are currently employed as the Executive Director of XXXXXXXXXX in the position of clergy and that as Executive Director your responsibilities are to oversee all aspects of the camp and its ministry. In your prior correspondence of March 2, 2000, you stated that you have been called and commissioned by the XXXXXXXXXX to be the religious leader for XXXXXXXXXX.
Generally, to be eligible for the clergyman's residence 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). Based on the additional information you supplied, it is our opinion that you would meet both the status test and the function test. Accordingly, provided there is no change in employment duties from those you submitted, it is our view that you will be entitled to this deduction.
We trust that these comments will be of assistance.
Yours truly,
Steve Tevlin
for Director
Business and Partnerships Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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