A recent European court decision has introduced new reporting requirements for Moroccan notaries, lawyers, and accountants, particularly those working with European clients or Moroccan expatriates.
The ruling reinforces the European DAC 6 directive on tax cooperation, which mandates the reporting of aggressive tax planning strategies.
Although Morocco is not directly under the jurisdiction of the European Court of Justice, the ruling has significant implications for Moroccan professionals.
They are now required to enhance transparency in dealings with EU clients or partners, as professional confidentiality can no longer be used to bypass reporting obligations related to aggressive tax planning. The only exception applies to lawyers representing clients in court.
Abdelmajid Barkaach, a notary and tax expert based in Rabat, expressed concerns that the ruling could negatively impact Morocco’s appeal as an international tax destination, especially given the country’s extensive agreements with the European Union. In a statement to Hespress Ar, Barkaach emphasized that professional confidentiality is traditionally considered sacred in Morocco, but noted that notaries and other professionals are already responsible for reporting suspicions of money laundering and terrorism financing.
Barkaach highlighted a potential conflict: while professionals are required to report aggressive tax planning, they must also advise clients on optimizing tax liabilities. He questioned whether scenarios, such as a Moroccan citizen with French nationality liquidating their business in France and relocating to Morocco to avoid French taxes, would be classified as aggressive tax planning.
The expert cautioned that the ruling could impact the free movement of capital and might inadvertently push individuals toward tax havens. Foreign clients living in Morocco, including celebrities, retirees, and investors, will now face increased tax scrutiny under the new directive.
Moroccan professionals involved in tax advisory and planning must adhere to the DAC 6 guidelines and report any transactions deemed aggressive, as outlined by the recent European court decision.
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