Morocco's tax directorate to monitor lifestyles, social media of tax evaders

The Moroccan General Directorate of Taxes (DGI) is adopting new techniques to combat tax evasion with a focus on the “standard of living” index. 

When compared to declared income, this index helps verify the accuracy of information provided by taxpayers, particularly those in liberal professions like doctors and architects.

DGI is determined to use 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, which is currently a key area of focus.

DGI data reveals a significant portion of self-employed individuals report incomes lower than their actual earnings. Audits have shown a lower tax contribution from this group compared to salaried employees who have taxes withheld at source. This discrepancy in tax revenue collected exceeds 6 billion dirhams.

DGI leverages data-sharing agreements with other departments to strengthen its efforts, such as the National Agency for Real Estate Conservation. This allows them 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 exploring the potential of using information from social media platforms to further identify tax evaders. 

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.

Previously, DGI audits targeted liberal-professions professionals 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.