QUESTION 2 (5 MARKS)
Mboma Ltd is incorporated in Tokyo, Japan, with offices in Tokyo and Cape Town. The company
imports and manufacturers designer sport tracksuits. The main factory is based in Camps Bay
industrial park, Cape Town, from where the majority of their manufacturing and distribution takes
place. The company imports approximately 30% of the fabrics used to design the tracksuits from
Tokyo.
Seven of the nine directors and all the managers are South African citizens who travels to Tokyo at
least five (5) times per year to attend board meetings in Tokyo. The decisions taken at board level are
then executed by the respective managers upon return in Cape Town.
REQUIRED:
Discuss and apply principles that should be taken into consideration when determining whether
Mboma Ltd is a South African tax resident or not.