You Declare Little but Spend a Lot? Morocco’s Tax Authorities Are Examining Your Accounts
Modest income declared to the tax authorities but significantly higher expenses or bank transactions can now trigger an audit. The DGI has ordered 5 000 taxpayers to regularize their situation and is seeking to recover around three billion dirhams.
The audits notably revealed inconsistencies in the declarations of property developers and entrepreneurs. Their declared income did not always correspond to the transactions, expenses and transfers recorded, reports Assabah.
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To identify these discrepancies, the General Directorate of Taxes cross-references tax information with data from other institutions, notably במסגרת conventions concluded with Bank Al-Maghrib.
Significant differences were thus identified between declared income and actual expenses made from certain bank accounts. The taxpayers concerned received formal notices to regularize their situation. With the support of the DGSN for the notifications, 5 000 people were formally contacted.
Three billion dirhams claimed
The amount the administration hopes to recover reaches approximately three billion dirhams. It was established by cross-referencing the information available from Bank Al-Maghrib and other competent organizations.
These checks are carried out notably under Article 216 of the General Tax Code. This provision allows the administration to examine the consistency between a taxpayer’s declared income and their lifestyle, expenses, as well as certain elements of their assets and bank holdings.
The DGI also relies on big-data analysis and the automated cross-referencing of tax returns, balance sheets and accounting files to identify cases presenting the most significant anomalies.
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A well-funded bank account or high expenses do not in themselves constitute fraud. It is the discrepancy between declared resources and the financial reality observed that can now place a taxpayer under the tax authorities’ scrutiny.
