Morocco Tax Authorities Target Real Estate Developers in Major Crackdown

According to the daily Al Akhbar, this operation that the tax authorities are preparing to launch would follow a recent report by the Court of Auditors which noted dysfunctions in the control and revision of tax returns of taxpayers and real estate developers in particular. To remedy this situation, the institution has recommended, among other things, to reform the control system, calling for a comparison of the spontaneous declarations of gains and the amounts recorded in the deeds of purchase and sale.

The Court of Auditors also asked to review the system of tax revisions for real estate developers which are carried out on the basis of amicable agreements with amounts lower than those calculated by the tax authorities. Specifically, it calls for the establishment of a clear reference framework and a systematic recovery procedure and that tax revision decisions be taken by dedicated commissions or committees for more effective control.