Malta, government introduces Al to curb tax evasion

LA VALLETTA (MALTA) (ITALPRESS/MNA) – The Maltese government revealed the use of a new software managed by Artificial Intelligence (AI) to immediately uncover tax evasion. Representatives of the International Monetary Fund were in Malta during the launch of the new system known as ‘Statistical Analysis System’. 85% of the government’s revenue comes from taxes. Last year, the tax department registered a 42 percent increase in tax agreements, that allow individuals and businesses with tax arrears to pay their dues over a period of time. Also, last year the tax department collected €240 million more in VAT.
Finance Minister Clyde Caruana confirmed that the new software is already in use in the UK, New Zealand, the Netherlands, Ireland, and Canada. It will be analyzing VAT returns by the end of this year and all other forms of taxes within the next three years.
The Maltese government is investing over 3 million euros over a period of three years in this AI software which will draw collect data from different registries and bank accounts to assess the individual’s cash deposits and illiquid assets in a move to help the tax authorities keep control on income and tax dues more efficiently. Finance Minister explained that the system will automatically alert authorities when a person or business’s declared income does not correspond with their accumulated wealth. The computer program runs daily analyses of the wealth that people and companies own and matches it with the income they declare.
-photo credit Doi-

Source: medNews