1.1"A”is a citizen of Israel as well as a citizen of a third world country ("B”).
1.2During the last few years, "A” is engaged in
various economic social and political undertakings in "B”, both on her
own and with the assistance of others ("A” has a business partner
resident in "B”) and her entire income is derived therefrom.
1.3"A”initiated various community projects in "B”. "A” enjoys extensive
social ties in "B” and "B”’s president granted "A” a
special position in "B”'s administration.
1.4"A”owns houses in Israel and in "B”. Recently "A” purchased a
residential apartment in Israel for investment purposes.
spouse is present in Israel throughout most of the tax year. He does not derive
any income and is not engaged in any income producing activities. The couple’s
children are majors.
1.6In accordance with the files of the Ministry of Interior "A”
was absent from Israel during the years 2004-2007 between 130-170 days each
1.7"A”owns a car in Israel. "A” also owns two cars in "B”.
1.8"A”has no Israeli bank account and "A”’s savings are deposited abroad.
1.9"A”has no health insurance coverage in Israel (carries private health insurance)
and is considered a non-resident for National Insurance purposes.
1.10"A”regards "B”, as her place of residence and intends to continue to be
active in "B” and to spend most of her time there and to strengthen her
ties to "B”.
1.11Because of "A”’s citizenship in "B” she is
liable to "B”’s taxes.
1.12Until 2006, "A” reported her income from "B”
in her Israeli tax returns. The tax paid in "B” was credited against the
Does "A” come under the aegis
of the definition of "resident” in section 1 of the Israeli Income Tax
3.1The opinion concludes that a fiscal examination of the
"center of interests” of "A” must accord priority to business and
economic facets over other facets including personal and family ties.
3.2In the present matter despite the meeting of the
statutory presumption of residence, the opinion conclude that "A” should
be regarded as a non-resident, in view of her "center of vital interests”
because of both the objective ties she enjoys with "B” and her
subjective desire to regard "B” as the center of her vital interests.
3.3The opinion determined that in cases where a spouse must
be present abroad, the residence of the couple need not be uniform.