ACCA Advanced Taxation (ATX) Practice Exam

What action can a person take to change their domicile from one country to another?

1. Establish a new bank account in the new country

2. Sever links with the old country and establish residence in the new country

3. Travel frequently between the two countries

4. Maintain a permanent address in the old country

The correct answer is: Sever links with the old country and establish residence in the new country

Changing one’s domicile is a significant legal action that involves both the physical presence and the intention to make a new country one’s permanent home. To achieve this, severing ties with the previous country and establishing residence in the new country is pivotal. This means not only relocating physically but also demonstrating a clear intention to settle permanently in the new location. Establishing a new bank account in the new country can be a part of the process but doesn’t inherently indicate a change in domicile. It’s merely an administrative step. Similarly, frequently traveling between the two countries suggests that the individual may not truly have established residence in the new country, thus not satisfying the conditions needed for a domicile change. Maintaining a permanent address in the old country would typically signify an ongoing connection to that country, making it challenging to establish a new domicile elsewhere. Severing ties with the old country and actively pursuing residence in the new country reflects both the physical act of moving and the intent necessary for a change of domicile, which is why this option is the most appropriate and reflects the legal requirements surrounding domicile changes.