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            Individual’s Residence (June 24th, 2008)

            1.Factual Background

            1.1"A”was an Israeli tax resident until November 2006. At that time, "A” and his family left Israel and moved to country "B”, which enjoys a DTT with Israel.

            1.2"A”and his spouse live in "B” together with their younger son and intend to return to Israel in a number of years.

            1.3During the years 2005-2008, "A” spent 200, 230, 10 and 10 days in Israel respectively.

            1.4In his tax return for 2007, "A” reported income under section 100A of the Israeli Income Tax Ordinance (Exit Tax) when he ceased being an Israeli Tax Resident.

            1.5After moving to "B”, "A” filed tax returns therein as a resident thereof.


            2.Question Posed

            Does "A” come under the aegis of the definition of an Israeli resident as per section 1 of the Israeli Income Ordinance?


            3.1The opinion recommends that "A” abstain form sojourning in Israel for more that 30 days during 2008 and thus defeat the arithmetic presumption of residence. Even if the arithmetic presumption was applicable, other criteria which serve to determine the center of interests in accordance with Israeli precedents point towards a non-resident tax status of "A”. Most significant among these are: "A” has no dwelling in Israel; his family abides with him abroad; and all his activities are carried on abroad.

            3.2The opinion also concludes that even if "A” was to be classified as a resident according to the Israeli law, under the tie breaker rules of the relevant DTT, "A” would be classified as a resident of "B” due to the location of his permanent abode therein and due to his closer personal social and economic affiliation with "B” than with Israel, which he visits only occasionally.

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