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.
Principal Issues: Is a part-time youth worker entitled to the clergy residence deduction?
Position: No
Reasons: Does not meet status or function of the clergy
2007-022358
XXXXXXXXXX C. Tremblay, CMA
(613) 957-2139
February 19, 2007
Dear XXXXXXXXXX:
Re: Clergy Residence Deduction
This is in reply to your letter of February 7, 2007 requesting our opinion as to whether an individual who is working as a youth minister in your church meets both the status and function tests as required under paragraph 8(1)(c) of the Income Tax Act (the "Act") so as to be allowed the clergy residence deduction. Specifically, you ask us whether an individual who is not in the clergy roll of the particular denomination and is not qualified to administer sacraments would qualify for the deduction under paragraph 8(1)(c) of the Act. You state that the individual has been hired in a part-time capacity to minister to the youth, teach confirmation classes, hold one church service per month, and to be in charge of the vacation bible school.
The particular circumstance in your letter on which you have asked for our views is a factual situation. As explained in Information Circular 70-6R5, it is not this Directorate's practice to comment on transactions involving specific taxpayers other than in the form of an advance income tax ruling. However, we have considered your enquiry and provide the following comments, which are of a general nature only.
As stated in paragraph 3 and 4 of Interpretation Bulletin IT-141R (Consolidated), whether or not a person meets the status test and is a "member of the clergy" or a "regular minister" depends upon the structure and practices of the particular church or religious denomination. A "member of the clergy" is a person set apart from the other members of the church or religious denomination as a spiritual leader. It is not necessary that the process of appointment be referred to as ordination or that the appointment be by someone higher up in the ecclesiastical hierarchy; it may be done by the congregation itself. In most established Christian churches, a member of the clergy would also be an ordained minister. However, whether ordained or not, a member of the clergy should be authorized to perform all of the duties of a regular minister. Accordingly, a member of the clergy of a religious denomination must be authorized or empowered to perform spiritual duties, conduct religious services, administer sacraments and carry out similar functions. The position should also be one of some permanence.
Accordingly, in our view, in your situation the individual would not meet the status test and would not be entitled to a deduction under paragraph 8(1)(c) of the Act. We have not considered the function test, as the status test has not been met.
We trust these comments will be of assistance.
Yours truly,
R.A. Albert, CA
for Director
Financial Sector and Exempt Entities Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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