Income Tax Act — I-3.3 143
Communal organizations 143 (1) Where a congregation, or one or more business agencies of the congregation, carries on one or more businesses for purposes that include supporting or sustaining the congregation’s members or the members of any other congregation, the following rules apply: (a) a trust is deemed to be created on the day that is the later of (i) December 31, 1976, and (ii) the day the congregation came into existence; (b) the trust is deemed to have been continuously in existence from the day determined under paragraph (a); (c) the property of the congregation is deemed to be the property of the trust; (d) the property of each business agency of the congregation in a calendar year is deemed to be property of the trust throughout the portion of the year throughout which the trust exists; (e) where the congregation is a corporation, the corporation is deemed to be the trustee having control of the trust property; (f) where the congregation is not a corporation, its council, committee of leaders, executive committee, administrative committee, officers or other group charged with its management are deemed to be the trustees having control of the trust property; (g) the congregation is deemed to act and to have always acted as agent for the trust in all matters relating to its businesses and other activities; (h) each business agency of the congregation in a calendar year is deemed to have acted as agent for the trust in all matters in the year relating to its businesses and other activities; (i) the members of the congregation are deemed to be the beneficiaries under the trust; (j) tax under this Part is payable by the trust on its taxable income for each taxation year; (k) in computing the income of the trust for any taxation year, (i) subject to paragraph (l), no deduction may be made in respect of salaries, wages or benefits of any kind provided to the members of the congregation, and (ii) no deduction may be made under subsection 104(6), except to the extent that any portion of the trust’s income (determined without reference to that subsection) is allocated to the members of the congregation in accordance with subsection (2); and (l) for the purpose of applying section 20.01 to the trust, (i) each member of the congregation is deemed to be a member of the trust’s household, and (ii) section 20.01 shall be read without reference to paragraphs 20.01(2)(b) and (c) and subsection 20.01(3). (m) [Repealed, 2023, c. 26, s. 35] Election in respect of income (2) If the trust referred to in subsection (1) in respect of a congregation so elects in respect of a taxation year in writing filed with the Minister on or before the trust’s filing-due date for the year and all the congregation’s participating members are specified in the election in accordance with subsection (5), the following rules apply: (a) for the purposes of subsections 104(6) and (13), the amount payable in the year to a particular participating member of the congregation out of the income of the trust (determined without reference to subsection 104(6)) is the amount determined by the formula 0.8 (A × B/C) + D + (0.2A - E)/F where A is the taxable income of the trust for the year (determined without reference to subsection 104(6) and specified future tax consequences for the year), B is (i) where the particular member is identified in the election as a person to whom this subparagraph applies (in this subsection referred to as a “designated member”), 1, and (ii) in any other case, 0.5, C is the total of (i) the number of designated members of the congregation, and (ii) 1/2 of the number of other participating members of the congregation in respect of the year, D is the amount, if any, that is specified in the election as an additional allocation under this subsection to the particular member, E is the total of all amounts each of which is an amount specified in the election as an additional allocation under this subsection to a participating member of the con