Joe Caruana stressed that the
system relies solely on num-
bers and behaviour, and not
names, insisting that the en-
forcement drive is in no way
a witch hunt. Cases are iden-
tified solely on the basis of risk
by the technology but human
intervention and expert judge-
ment still remains central to
each decision.
The system has effectively
converted the MTCA from a
reactive administration with
a crushing workload into a
proactive enforcer. In this
way, the tax authorities can
focus more on ensuring that
taxpayers are compliant from
the outset, rather than chasing
them for their dues.
Looking ahead, Tax and Cus-
toms Commissioner Joe Caru-
ana said the authority will
invest further in digital tools
in the future. He noted the
MTCA is in the process of is-
suing a tender for technology
that can enable it to monitor
real-time VAT reporting. In
countries that have already
implemented similar systems,
the VAT gap has been reduced
by as much as 15% to 20%.
7
maltatoday | SUNDAY • 15 NOVEMBER 2026
NEWS
AI-powered system tackling tax evasion
220
200
180
160
140
120
100
80
60
40
20
0
VAT FSS (TAX and SSC) Income Tax SSC (Self-employed) Eco-tax
196.9
183.6
165.5
202
130
174.5
178.5
181.3
35.4
59.2
59.4
54.6
11.9
13.5
15.8
16.8
0.5
0.6 0.6 0.6
2023 2024 2025 2026 (Q3)
Tax arrears collected since introduction of AI system
Figures presented € millions (Source: MTCA)
Tax Commissioner, Joseph Caruana (Photo: James Bianchi/MaltaToday)
Tax & Customs Administration office
(Photo: James Bianchi/MaltaToday)
