Statement number Statement (1) Bill Smith, an Australian citizen, who has been living for the past two years in Hong Kong where he owns his home. He has no home in Australia,nofamily ties in Australia and he does not intend to return to Australia in the foreseeable future. (2) Jeff Wayne, an American citizen and film star,lived in a hotel in Sydney during a visit to Australia for 5 months (from 8 February to 28 June), the purpose of which was to film a television series set in Australia. The series was not a success and Wayne return to his wife and family (who lived in the family house) in the United States of America on 28 June. (3) A company, incorporated in South Australia, is the wholly-owned subsidiary of a company incorporated in Canada. No business will be carried on by the South Australian company in Australia in the income year. (4) A company, incorporated in Pakistan, carries out merchandising activities in Pakistan. The company has its central management control in Sydney, Australia.

Which of the above statements describe circumstances that come within the meaning of resident as defined in section 6 of the Income Tax Assessment Act 1936?

Statements numbered (2) and (3) describe residents .

Statements numbered (3) and (4) describe residents .

Statements numbered (1) and (3) describe residents .

Statements numbered (1) and (4) describe residents .

All of the above statements clearly describe residents .