Morocco Tax Authority Cracks Down on Undeclared Income and Gift Claims
The Moroccan tax authority is asking holders of bank accounts to explain significant transfers incompatible with their declared income. Family gifts, repaid debts, inheritances or business income must be supported by documents.
Notices have been sent to taxpayers in Casablanca, Rabat and Tangier following the detection of significant financial movements on their accounts. Some recipients would officially be unemployed or declare no activity corresponding to the amounts received.
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According to Hespress, the accounts in question received, over the past two years, transfers and deposits from individuals or businesses.
The administration is particularly seeking to determine whether these sums correspond to professional income, business receipts, rental income, gifts, inheritance or debt repayment.
A simple "it’s a gift" is not enough
A family transfer or loan repayment is not automatically taxable. But the recipient must be able to demonstrate its origin: donation certificate, succession deed, debt acknowledgment, contract, invoice or any other consistent supporting document.
Some taxpayers reportedly explained that they had temporarily held money for relatives or received repayment of undocumented debts. However, controllers suspect certain accounts are being used to collect income from undeclared commercial activities.
The tax authority is also examining accounts opened in the names of relatives or acquaintances that would serve as front men. Bank movements are compared to tax returns, but also to data relating to real estate and vehicles.
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The persons questioned have a deadline of up to 30 days to present the requested supporting documents. In the absence of sufficient explanation, the administration may initiate an examination of their tax situation and reassess the income used to calculate taxes.
