Question 1

Aerobic Limited is incorporated in Hong Kong and carries on a business manufacturing clothes there. Aerobics operations are all managed from Hong Kong. Aerobic has no office in New Zealand. All meetings of the board of directors are held in Hong Kong, but the Hong Kong directors always act on the instructions of Aerobics New Zealand parent company, and unquestioningly implement the decisions made by the parent company. Determine the tax residency status of Aerobic Limited.