A member of the clergy or of a religious order or a regular minister of a religious denomination may claim a deduction with respect to his residence if:
- He is ministering to a diocese, parish or is in charge of a congregation; or
- Has a full time administrative post with a religious order or denomination.
The expression religious order means a group of persons submitted to the same rules and the same religious, moral and social discipline such as Cistercian monks.
When an individual is supplied living accommodations for free, the value of the benefit received is included in his income for tax purposes. If the individual meets the criteria of the above definition, he may claim a deduction for the lodging.
As of the 2001 tax year, the employer must certify that the individual is entitled to this deduction.
Form T1223 must be completed to claim the clergy residence deduction; the individual will have to complete Part A and C while the employer completes Part B.
If the individual had more than one employer in the year, each employer will have to complete a separate form.
The individual does not have to attach this form to his return. However, he must keep it in case he is asked to show it.
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