Real estate purchase in Morocco: tax authorities finally crack down on under-the-table payments

Regional tax authorities uncovered this scheme using powerful data analysis algorithms. These computer tools detected the repeated use of identical tax identification numbers by multiple real estate developers. Field verifications quickly proved that the invoiced services were completely absent from the accounting records of the issuing companies.

On Bladi.net : Tax Crackdown Rocks Morocco’s Real Estate: Developers Face Audits Over Cash Schemes

The heart of this fraud relied on the practice of "under-the-table" payments. Developers declared sales contracts at amounts lower than reality. To justify the funds, they imposed secondary contracts on buyers for alleged "additional finishing work" or interior renovations. Paid in cash, these supplements sometimes exceeded 25% of the value of mid-range and high-end properties.

The scale of financial damage proves colossal. According to information gathered by Hespress, the cumulative value of these fake invoices amounts to more than 43 million dirhams. The fraudulent transactions involve a network of fifty-two commercial companies and five real estate development firms, all of which received tax adjustment notices.

On Bladi.net : Moroccan Tax Authorities Probe High-End Real Estate Developers Over Cash Payments

These pricing anomalies were confirmed by their discrepancy with reference prices per square meter set by the General Tax Directorate and the Land Registry. They corroborate reports from customers victimized by extortion for undeclared payments. Under Article 192 of the General Tax Code, fraudsters now face fines ranging from 5,000 to 50,000 dirhams, coupled with sentences of one to three months in prison.