Zylstra Estate v. Canada
T-494-90
MacKay J.
7/11/94
26 pp.
Appeals from Tax Court decision (Small et al. v. Minister of National Revenue (1989), 89 DTC 663 (T.C.C.); Zylstra Estate et al. v. Minister of National Revenue (1989), 89 DTC 657 (T.C.C.)) dismissing taxpayers' appeals against Minister's assessment of income tax -- Entitlement to Income Tax Act, s. 8(1)(c) deduction of residence allowance for "member of clergy" or "religious order" either ministering to a "diocese, parish of congregation" or engaged in full-time administrative service by appointment of "religious order" -- Interpretation within religious communities of s. 8(1)(c) terms -- Plaintiffs, holding senior positions at Institute for Christian Studies and Ontario Bible College and Ontario Theological Seminary (institutions), claiming satisfaction of s. 8(1)(c) status and function requirements -- S. 8(1)(c) providing deduction only in cases where taxpayer qualifying by reason of status or office and discharging defined responsibilities ordinarily associated with status or office -- Term "religious order" in broader Christian context referring to group of persons, distinct from within larger religious community, living under set of rules, bound by vows of chastity, poverty and obedience, including agreement to communal life unless permitted to live otherwise -- Institutions' Doctrinal Statement and Educational Creed not similar in substance to vows made by members of traditional religious order -- Institutions not "religious order" within s. 8(1)(c) as: (1) no expression of faith or religious purpose, apart from educational purpose, marking institutions and members as distinct from churches or denominations that each serves; and (2) institutions having primary purpose in education as opposed to service to their God through worship, prayer and devotion -- As institutions not "religious orders", plaintiffs not engaged in full-time administration services by reason of functions at institutions -- "Clergy" status test, following dictionary meaning, requiring person ordained and set apart from general church membership for special religious functions -- In absence of ordination, "Commended Worker" status within church not qualifying plaintiff as "clergy" as not conferring upon plaintiff position of greater significance than that other members -- S. 8(1)(c) functional test requiring qualification of institutions' membership as "diocese, parish or congregation" -- "Diocese, parish or congregation" requiring body recognized by religious denomination for regular organizational religious activities -- Faculty, staff, students and alumni (members) of institutions not constituting congregation as institutions seen as representative of several denominations through its educational programs and members relying upon own denominational church congregations for primary spiritual life-Ordained plaintiff meeting status component to s. 8(1)(c) requirement but not meeting functional requirement of ministering to "a diocese, parish or congregation" -- Appeals dismissed -- Income Tax Act, S.C. 1970-71-72, c. 63 s. 8(1)(c).