S.L. 123.221 Art. 6Cessation of special tax status.    Cap. 372.

(1) An individual shall, with immediate effect from the beginning of the relative year of assessment, cease to possess special tax status under these rules:

(a) if the individual becomes a Maltese national;

(b) if at any time, after the appointed day, such individual does not hold a qualifying property holding, including in the case where the said individual lets or sublets the qualifying property holding;

(c) if at any time, after the appointed day, such individual becomes a long-term resident or permanent resident of Malta;

(d) in cases where a beneficiary was granted special tax status in terms of rule 3(1)(c), if the individual fails to receive in Malta all the pension indicated in the documentary evidence submitted to the Commissioner according to rule 4(g);

(e) in cases where a beneficiary was granted special tax status in terms of rule 3(1)(d), if the individual fails to receive in Malta at least forty percent (40%) of the United Nations pension or Widows’ and, or Widowers’ Benefit as indicated in the documentary evidence submitted to the Commissioner according to rule 4(h);

(f) if after the appointed day, the individual does not have private medical insurance in respect of all risks normally covered for Maltese nationals for himself and his dependants;

(g) if the individual’s stay is not in the public interest;

(h) if the individual stays in any other jurisdiction for more than one hundred and eighty-three (183) days in a calendar year;

(i) if the individual ceases to be duly represented by an authorised registered mandatary;

(j) if any dependants, including additional dependants are determined to be not fit and proper;

(k) if the beneficiary fails to effect payment of the minimum amount of tax payable in terms of rule 5(1) or 5(2) or fails to effect payment within the time limit imposed in accordance with rule 5(4);

(l) if the beneficiary fails to submit the return in accordance with rule 5(5); or

(m) if the individual fails to possess any criteria required in accordance with rule 4.

(2) An individual who ceases to possess special tax status for any of the reasons specified in sub-rule (1) shall notify the Commissioner through his authorised registered mandatory of such fact by not later than four (4) weeks from the date when he becomes aware of such fact. This notification is to be made on such form as may be required by the Commissioner. Where such notification is not made within the time specified, the individual responsible under this paragraph shall be charged an administrative penalty of five thousand euro (€5,000).

(3) An individual shall with immediate effect, cease to possess special tax status from the relative year of assessment in accordance with these rules if he notifies the Commissioner through his authorised registered mandatory of his intention not to remain in possession of such special tax status on such form as the Commissioner may require.

(4) An individual shall, with effect from the beginning of the relative year of assessment, cease to possess special tax status under these rules if he is in breach of the Act and, or of the Income Tax

Management Act.

(5) The Minister shall have the power to pardon any failure to satisfy any one of the conditions in sub-rule (1) if:

(a) such failure was due to unforeseen circumstances which are beyond the control of the individual;

(b) such individual notifies the Minister of such failure; and

(c) such individual has exercised his best efforts to remedy the failure.