Minister of National Revenue v. Proulx, (2010) 415 N.R. 19 (FCA)

• Jurisdiction: Federal Jurisdiction (Canada)
• Court: Court of Appeal (Canada)
• Judge: Blais, C.J., Trudel and Mainville, JJ.A.
• Citation: (2010), 415 N.R. 19 (FCA),2010 FCA 261
• Date: 12 October 2010

MNR v. Proulx (2010), 415 N.R. 19 (FCA)

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[French language version follows English language version]

[La version française vient à la suite de la version anglaise]

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Temp. Cite: [2010] N.R. TBEd. OC.025

Sa Majesté la Reine (appelante) v. Diane Proulx (intimée)

(A-608-08; 2010 FCA 261; 2010 CAF 261)

Indexed As: Minister of National Revenue v. Proulx

Federal Court of Appeal

Blais, C.J., Trudel and Mainville, JJ.A.

October 12, 2010.

Summary:

Proulx was pastoral agent of the Roman Catholic Church in a Quebec diocese. She sought to include a clergy residence deduction, permitted under s. 8 of the Income Tax Act, when computing her income for the 2005 taxation year. The Minister of National Revenue disallowed the deduction. Proulx appealed the assessment.

The Tax Court of Canada, in a judgment reported at 2008 TCC 545, allowed the appeal and allowed the deduction. The Minister appealed.

The Federal Court of Appeal allowed the appeal, set aside the tax court judge's decision and dismissed the assessment appeal.

Income Tax - Topic 589

Income from office or employment - Deductions - Clergy's residence - Proulx was pastoral agent of the Roman Catholic Church in a Quebec diocese - She sought to include a clergy residence deduction, permitted under s. 8 of the Income Tax Act, when computing her income for the 2005 taxation year - The Minister of National Revenue disallowed the deduction - Proulx appealed the assessment - A tax court judge allowed the appeal and allowed the deduction - The judge recognized Proulx, a pastoral agent, as having "the status and role of a regular minister with the Church" - The Federal Court of Appeal allowed the Minister's appeal, set aside the tax court judge's decision and dismissed the assessment appeal - Proulx, acting as a pastoral agent, was not a regular minister of the Roman Catholic Church as required by s. 8(1)(c)(i) and therefore could not claim the deduction.

Cases Noticed:

Canada v. Lefebvre et al., 2008 TCC 395, revd. (2009), 399 N.R. 364; 2009 FCA 307, appld. [paras. 6, 7].

Beaudoin v. Québec (Sous-ministre du Revenu), [2010] J.Q. No. 8380; 2010 QCCQ 5528; J.E. 2010-1412, refd to. [para. 10].

Miller v. Canada (Attorney General) (2002), 293 N.R. 391; 220 D.L.R.(4th) 149; 2002 FCA 370, refd to. [para. 12].

Statutes Noticed:

Income Tax Act, R.S.C. 1985 (5th Supp.), c. 1, sect. 8(1)(c) [para. 5].

Counsel:

Benoît Mandeville, for the appellant;

Daniel Champagne, for the respondent.

Solicitors of Record:

Myles J. Kirvan, Deputy Attorney General of Canada, Montreal, Quebec, for the appellant;

Champagne Perreault, Repentigny, Quebec, for the respondent.

This appeal was heard at Montréal, Quebec, on October 12, 2010, before Blais, C.J., Trudel and Mainville, JJ.A., of the Federal Court of Appeal. Trudel, J.A., delivered the following reasons for judgment for the court from the bench on that date.