Billion-Dirham Tax Evasion Scheme Exposed: DGI Cracks Down on Corporate Fraud in Morocco

Tough times for companies suspected of evading the payment of tax arrears amounting to several billion dirhams, who have abusively resorted to judicial settlement and liquidation procedures before the commercial courts. Currently, the control services under the General Directorate of Taxes (DGI) have considerably intensified their verification operations. The first findings from the ongoing audit missions have revealed the involvement of executives in the falsification of invoices and expert reports, as well as in the creation of fictitious debts intended to deceive the judges responsible for assessing the financial situation of their companies, according to sources at Hespress.

These executives are suspected of having invoked "irreversible" financial difficulties in order to take advantage of the legal provisions provided for by the Commercial Code in this type of procedure. Thanks to collaboration with the judicial services of the commercial courts of the kingdom, particularly that of Casablanca, the tax inspectors have noted suspicions of manipulations carried out by executives in the management of common current accounts between shareholders, in order to liquidate the companies and escape the payment of considerable tax debts, the same sources specify.

From complaints and anonymous letters received by the DGI, there are attempts by legal representatives of companies to evade the payment of tax and supplier debts amounting to several billion dirhams, through falsified financial data and "manufactured" accounting expert reports included in the liquidation files. Two companies based in Casablanca have already been flagged. They presented falsified annual financial statements, validated by an auditor.

To recall, Articles 560 to 695 of the Commercial Code "govern the recovery of tax claims in the event of the opening of a judicial settlement or liquidation procedure against a company in difficulty". The tax administration, considered as a creditor, is required by Article 686 to declare its claims within 60 days following the judgment, under penalty of losing its right to participate in the procedure, it is indicated. In the event of judicial settlement (Article 611), prior debts are frozen and tax claims are integrated into the treatment plan according to the order of priority of creditors, it is specified.