ACCA Advanced Taxation (ATX) Practice Exam

What is meant by 'domicile of origin'?

1. The permanent home of the mother

2. The permanent home of the father

3. The place where one was raised

4. The current home at 18 years old

The correct answer is: The permanent home of the father

Domicile of origin is a key concept in tax law, particularly when determining an individual's tax residency and liabilities. It refers to the domicile that a person automatically acquires at birth. Typically, the domicile of origin is linked to the permanent home of the father at the time of the person’s birth. Hence, the correct answer relates to the understanding that an individual's domicile of origin is tied to their father's domicile. This concept is significant because it establishes a foundational domicile for an individual that can influence subsequent legal and tax situations throughout their life. It's important to recognize that the individual's domicile can change over time due to various factors, including living arrangements and personal choices, but the domicile of origin remains an essential reference point. The other options may refer to various aspects of someone's upbringing or current living situation, but they do not accurately define domicile of origin as established by law. The permanent home of the mother, the place where one was raised, and the current home at 18 years old are not legally recognized determinations for the domicile of origin.