Ministry Leaders Lose Tax Breaks

A recently concluded court case has clarified who among Canadian religious workers qualify for certain tax benefits.

For the past several years, Revenue Canada has been challenging the rights of Christian ministers and parachurch leaders to claim a tax deduction for clergy housing. With the help of the Canadian Council of Christian Charities (CCCC) and a $2 million fund raising campaign for legal expenses, dozens of those denied the deduction appealed to the Tax Court of Canada. By the conclusion of this round, 38 out of 46 appellants received favorable decisions.By Josh Kennedy in Pontiac.

Judge D. G. H. Bowman heard cases from Bible colleges, youth and campus ministries, and overseas missions. He considered such factors as income level, whether the individual acted as a minister of a congregation or as a member of a religious order, and whether the work emphasized more proselytism or social work.

For example, Bowman declared that Youth for Christ worker Sherryl Koop of Winnipeg, a chaplain to young offenders, is, in effect, a minister of a congregation. Given her ministry and level of self-sacrifice, Bowman found Revenue Canada’s prior ruling “little short of startling.”

On the other hand, Bowman concluded Navigators is not a religious order, their staff live comfortably, and the bulk of their efforts are spent on proselytizing, so he upheld the decision not to grant the housing tax break. Navigators is considering an appeal.

Another 150 appeals are before the court, and 400 more people have been told they do not qualify for the deduction. Revenue Canada’s action is part of its major re-examination of charities in Canada. Current legislation is based on English common law. There are 76,000 registered charities in Canada, more than 40 percent of which are religious.

Copyright © 1999 Christianity Today. Click for reprint information.

Also in this issue

The Coming of the Pragmatic Prophets: These activists are more than critics. They work the corridors of power to channel money and influence for good.

The Gospel of Jesus Christ

The Gospel of Jesus Christ

What Makes Music Christian?

Classic & Contemporary Excerpts from June 14, 1999

A Troubled Young Evangelist

Orthodoxy with an Attitude

Can Good Come Out of This Evil?

73,000 Teens Pledge Responsibility

Gambling Panel Urges Moratorium

Evangelicals Target 'Marriage Tax'

Mall Gains Second Life As Church

Church Name-Dropping Pays Off

Religious Freedom Panel in Place

In Brief: June 14, 1999

Churches Reach Out to Refugees

Evangelicals Reject Religious Statues

Baptist Seminary Back in Business

Evangelicals Come Up for Air

Bishop Faces Genocide Accusation

The Criminologist Who Discovered Churches

Unbelievable?

Letters

Shooting Aftermath: Parents Take Aim at Hollywood

Harvest Season?

Missionaries in Harm’s Way

Preparing for Pilgrims

Church of the Web

Salvation Army: Newest General Wants to Save Souls

Editorial

The Long Road After Littleton

News

Sharon Baptist Discovered Welfare Ministry

Mr. Wallis Goes to Washington

God's Contractor

A Call to Evangelical Unity

The Gospel of Jesus Christ: An Evangelical Celebration

Guardians of the Lost Ark

Severe Mercy in Oregon

A Mother’s Strange Love

Dispatch from Sri Lanka: Bombs Away

Committing the Unforgivable Sin

View issue

Our Latest

News

Died: Jack Iker, Anglican Who Drew the Line at Women’s Ordination

The Texas bishop fought a bitter legal battle with the Episcopal Church and won.

Why Can’t We Talk to Each Other Anymore?

Online interactions are draining us of energy to have hard conversations in person.

Church Disappointment Is Multilayered

Jude 3 Project founder Lisa Fields speaks about navigating frustrations with God and fellow believers.

The Robot Will Lie Down With the Gosling

In “The Wild Robot,” hospitality reprograms relationships.

How Priscilla Shirer Surrenders All

The best-selling Bible teacher writes about putting God first in her life and how healthy Christian discipleship requires sacrifice

The Bulletin

Second Hand News

The Bulletin talks presidential podcasts, hurricane rumors, and the spiritual histories of Israel and Iran.

Which Church in Revelation Is Yours Like?

From the lukewarm Laodicea to the overachieving Ephesus, these seven ancient congregations struggled with relatable problems.

Apple PodcastsDown ArrowDown ArrowDown Arrowarrow_left_altLeft ArrowLeft ArrowRight ArrowRight ArrowRight Arrowarrow_up_altUp ArrowUp ArrowAvailable at Amazoncaret-downCloseCloseEmailEmailExpandExpandExternalExternalFacebookfacebook-squareGiftGiftGooglegoogleGoogle KeephamburgerInstagraminstagram-squareLinkLinklinkedin-squareListenListenListenChristianity TodayCT Creative Studio Logologo_orgMegaphoneMenuMenupausePinterestPlayPlayPocketPodcastRSSRSSSaveSaveSaveSearchSearchsearchSpotifyStitcherTelegramTable of ContentsTable of Contentstwitter-squareWhatsAppXYouTubeYouTube