Moroccan tax authorities crack down on income tax evasion using AI and spending analysis

Moroccan tax authorities have launched a new audit campaign targeting individuals suspected of underreporting their income to evade taxes.

According to Hespress EN sources, the General Directorate of Taxes (DGI) has identified discrepancies between declared income and actual spending levels among certain taxpayers, including traders, engineers, and doctors.

The audit, conducted under Article 29 of the General Tax Code, focuses on personal expenditure patterns to assess overall tax compliance. Authorities reportedly discovered significant discrepancies, such as a doctor who reported low earnings despite owning a stable of horses near Casablanca, and a civil engineer whose children’s tuition fees at a French school in Casablanca far exceeded his declared income.

In response to the tax review, some individuals voluntarily contacted tax authorities for clarification, while others engaged in negotiations to settle their tax obligations amicably and avoid penalties.

The auditing process examines a range of personal expenses, including primary and secondary residences, vehicle maintenance, aircraft and boat operations, rental payments, loan repayments, real estate and asset acquisitions, and financial transfers to family members.

Authorities have also employed new data analysis and artificial intelligence tools to detect inconsistencies and identify potential tax evaders. These advanced methods allow tax inspectors to analyze spending patterns and lifestyle indicators to uncover undeclared income.

For 2024, Moroccan tax authorities have intensified efforts to curb tax evasion by leveraging a wide array of financial and personal data. The initiative is part of a broader strategy to enhance tax compliance and increase transparency in the relationship between taxpayers and the tax administration.