Reference no: EM133575601

Assume that the United States-People's Republic of China Income Tax Treaty contains tie breaker rules to answer this question: (1) permanent home; (2) center of vital interests (economic and personal interests); (3) habitual abode; and (4) nationality. Xi Wen is a citizen (national) of the People's Republic of China (PRC). Mr. Xi has been physically present in the United States for an average of 200 days during each of last 3 years under a U.S. business visa. He works for a U.S. affiliate of substantial PRC business enterprise comprised of many PRC corporations (>28). His spouse and three children have been living with him in the U.S. for the last 2 years. Mr. Xi maintains a home in the PRC and acquired a home in San Marino, California, USA over a year ago. His three children attend U.S. public schools in or around San Marino. Mr. Xi has strong personal and business ties to both PRC and the United States. Under the United States-PRC Income Tax Treaty, apply the relevant tie-breaker rule and give your conclusion of whether the United States or PRC will be able to tax Mr. Xi as a resident (i.e., if the U.S. wins under.