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Morocco’s Tax Directorate: Monitoring Lifestyles and Social Media

Morocco's Tax Directorate: Monitoring Lifestyles and Social Media

Morocco’s Tax Directorate is taking significant steps to curb tax evasion by closely monitoring the lifestyles and social media activities of suspected tax evaders. This strategic move aims to enhance the accuracy of tax declarations and ensure compliance.

Monitoring Lifestyles for Tax Evasion Detection

The Moroccan General Directorate of Taxes (DGI) is adopting innovative techniques to combat tax evasion, focusing on the “standard of living” index. This index is crucial for verifying the accuracy of information provided by taxpayers, particularly those in liberal professions such as doctors and architects.

Using Data Sources for Accurate Tax Reporting

DGI is determined to utilize all available means to identify and hold tax evaders accountable. This includes monitoring the lifestyles of individuals suspected of underreporting income. Taxpayers should be aware that DGI will utilize various data sources to pinpoint potential tax evasion. For instance, DGI data reveals a significant portion of self-employed individuals report incomes lower than their actual earnings. Audits have shown that self-employed individuals contribute less in taxes compared to salaried employees who have taxes withheld at the source. This discrepancy in tax revenue collected exceeds 6 billion dirhams.

Cross-Checking Assets and Social Media for Tax Evasion

To strengthen its efforts, DGI leverages data-sharing agreements with other departments, such as the National Agency for Real Estate Conservation. This allows DGI to cross-check the assets of suspected tax evaders. For example, individuals declaring income below 10,000 dirhams per month may own significant real estate, indicating a mismatch between declared income and actual wealth.

DGI is also exploring the potential of using information from social media platforms to identify tax evaders further. Many individuals freely share details of their lifestyles online, which tax inspectors can use to evaluate the accuracy of tax declarations. This new approach primarily targets self-employed individuals, as some likely declare incomes that significantly underestimate their actual activity levels. DGI can combine social media data with other information sources to investigate potential property ownership and identify discrepancies with tax declarations.

Auditing Liberal Professions to Uncover Tax Evasion

Previously, DGI audits targeted professionals in liberal professions suspected of using art purchases to hide income. This tactic often involves dealing in cash and under-reporting transactions, with the remaining income potentially being stashed in businesses to avoid bank deposits and potential scrutiny. By employing these new methods, DGI aims to ensure a more accurate and fair tax system in Morocco.

FAQs

What new techniques is DGI using to combat tax evasion?

DGI is focusing on the “standard of living” index and monitoring lifestyles and social media activities of suspected tax evaders.

How does DGI verify the accuracy of tax declarations?

DGI uses various data sources, including data-sharing agreements with other departments and information from social media platforms.

Who is primarily targeted by these new measures?

The new measures primarily target self-employed individuals who likely underreport their actual income levels.

What discrepancies has DGI found in tax contributions?

DGI has found that self-employed individuals contribute less in taxes compared to salaried employees, with a discrepancy in tax revenue exceeding 6 billion dirhams.

Conclusion

Morocco’s Tax Directorate is implementing robust measures to ensure tax compliance and accuracy. By monitoring lifestyles and utilizing social media data, DGI aims to identify tax evaders and close the gap in tax revenue. These efforts are crucial for maintaining a fair and equitable tax system in Morocco.


By Bourbiza Mohamed, Journalist and Travel Expert

Written by bourbiza mohamed

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