Tax Crackdown: Morocco Urges Individuals to Declare All Income Before Year-End

Several hundred individuals whose income and expenses show discrepancies received notifications from the tax administration in September. "The launch of this first wave of tax audits of individuals by the Directorate General of Taxes (DGI) must have shaken more than one person. This is the examination of the overall tax situation of individuals presenting inconsistencies between income and expenses, in accordance with Article 216 of the General Tax Code," writes L’Économiste, which announces a second wave by the end of the year.

The operation aims to allow taxpayers who benefit from the amnesty on undeclared cash assets before 2024 not to declare all their income, to regularize their tax situation. According to the daily, "it also concerns taxpayers who do not have a tax identification number, but whose DGI, thanks to its own means, has traced financial flows and who must explain their origin and the fact that they have not been declared and taxed. With a little more than two months to go before the December 31 deadline, the tax administration is open to people who wish to regularize their situation."

The tax administration will verify the origin of the income that had not been declared. All assets are concerned, including life insurance contracts. The taxpayer is required to provide proof of payment of tax or the liberating contribution. Otherwise, he will be subject to a surcharge.