{"id":14685,"date":"2013-01-10T19:00:00","date_gmt":"2013-01-11T00:00:00","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/cccc\/2013\/01\/10\/clergy-residence-deduction-form-t1223-new-changes-by-canada-revenue-agency\/"},"modified":"2014-02-21T08:48:44","modified_gmt":"2014-02-21T13:48:44","slug":"clergy-residence-deduction-form-t1223-new-changes-by-canada-revenue-agency","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/cccc\/2013\/01\/10\/clergy-residence-deduction-form-t1223-new-changes-by-canada-revenue-agency\/","title":{"rendered":"Clergy Residence Deduction Form T1223\u2014New Changes by Canada Revenue Agency"},"content":{"rendered":"

The T1223 has been revised since this post was published. Please see\u00a0Recent Revisions to CRA’s Clergy Residence Deduction Form: A Positive Development.\u00a0<\/a><\/b><\/em><\/p>\n

The Canada Revenue Agency (CRA) has made further changes to its T1223 \u2013 Clergy Residence Deduction (CRD) form. Certain sections have been expanded in “Part B – Conditions of qualifying employment (to be completed by the employer).”[1]<\/sup> Also, a note has been added to “Part C – Calculation of deduction (to be completed by employee).”<\/p>\n

Individuals eligible for the CRD and their employers must be familiar with the changes since this form is their joint submission to CRA.\u00a0<\/strong><\/p>\n

CCCC is currently in consultation with CRA and will provide updates as needed.<\/strong><\/p>\n

MAIN CHANGE<\/h3>\n
The main change has occurred in Part B, section 1. a):<\/div>\n\n\n\n\n
\n
Prior Wording<\/strong><\/div>\n<\/td>\n
\n
Revised Wording<\/strong><\/div>\n<\/td>\n<\/tr>\n
\n
\u00a0\u201cWas this employee … a member of the clergy? If so, specify his or her title as designated by the denomination or church that formally recognized him or her as well as the name of that denomination or church.<\/span>\u201d<\/em><\/div>\n<\/td>\n
\n
\u00a0\u201cWas this employee … a member of the clergy? If so, specify his or her title as designated by the denomination or church that formally recognized him or her as well as the name of that denomination or church. Provide a copy of his or her ordination certificate.<\/em><\/strong>\u201d<\/em><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

CCCC Commentary<\/strong><\/h4>\n

CRA describes \u201cmember of the clergy\u201d in its \u201cInterpretation Bulletin-141R Consolidated-Clergy Residence Deduction (the IT), which summarizes the Tax Court of Canada\u2019s decisions regarding CRD. Paragraph 4 states:<\/p>\n

A \u201cmember of the clergy\u201d 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.It is sufficient that there be a formal or legitimate act of recognition, and it requires a serious and long-term commitment to the ministry. Priests, pastors, ministers, rabbis, imams, commended workers and other persons who have been commended, licensed, commissioned or otherwise formally or legitimately recognized for religious leadership within their religious organization may be members of the clergy.<\/em><\/div>\n

CCCC is concerned that the new requirement to provide a copy of an ordination certificate appears to be inconsistent with CRA\u2019s IT, which states:<\/p>\n

    \n
  1. \n
    appointing clergy does not need to be referred to as \u201cordination\u201d;<\/div>\n<\/li>\n
  2. \n
    appointing clergy does not necessarily require written documentation\u2014only \u201ca formal or legitimate act of recognition.\u201d<\/div>\n<\/li>\n<\/ol>\n
    CCCC is waiting for CRA\u2019s clarification on these matters.<\/div>\n

    CCCC Suggestions<\/strong><\/h4>\n