Morocco: Tax dragnet against SARL managers

The Directorate General of Taxes (DGI) has launched a major offensive against tax evasion within limited liability companies (SARL). According to sources cited by Hespress, dozens of executives have been surprised by notifications holding them personally responsible for the debts of their structures. The inspectors uncovered systematic practices of false invoices and fictitious or incomplete accounting.

On Bladi.net: Morocco: Is your company in the tax authorities’ sights? 130,000 companies targeted

This campaign particularly targets single-member limited liability companies (SARL AU), often used by fraudsters in the often vain hope of protecting their personal assets from prosecution. However, under Law No. 5-96, the civil and criminal liability of the manager can be engaged in case of mismanagement or violation of the bylaws. The offenses found now expose the offenders to fines ranging from 5,000 to 50,000 dirhams.

The in-depth audits revealed glaring anomalies, including declarations of chronic deficits over several years. Questionable invoices from inactive or already liquidated companies were identified in the balance sheets. In many cases, the managers used the company’s funds for strictly personal purposes, thus violating the Commercial Code and the General Tax Code.

On Bladi.net: Tax fraud: hundreds of Moroccan companies in the sights of the tax authorities

Faced with these maneuvers, the controllers have multiplied the raids on the company headquarters to examine the original accounting documents. This pressure is now worrying the domiciliation companies that host these structures, as they could be held partially responsible. Experts recall that the principle of "limited liability" in no way constitutes a shield against serious faults or deliberate fraudulent maneuvers.