What are the criteria for programming the tax audit?
How to avoid tax audit triggers?
In terms of taxes and duties, there are several factors that are likely to confront your company with an accounting audit, called a tax audit.
The Moroccan tax system is based on a declarative system. It is therefore entirely legitimate for the tax administration to have a right of control. It is therefore a “natural” event in the life cycle of a company.
Selected a priori randomly by the general direction of the taxes there are certain criteria which increase your chance (or rather bad luck) to be selected and subjected to a tax control. These are criteria that the tax administration uses as risk factors to select the companies to be audited:
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The area of the activity
The various sectors of activity are categorized by the tax authorities according to the overall risk they represent of non-compliance with tax rules and consequently of unpaid taxes.
In addition, it regularly happens that the tax administration targets certain sectors in particular within the framework of control campaigns.
Late filing or failure to file a tax return
Defaults in reporting as well as late filing of tax returns are considered by the DGI as additional risk factors. Indeed, a company that does not respect its reporting obligations generally has a good chance of being in non-compliance in the context of the calculation of its taxes, or more generally in the proper keeping of its accounts. The regular failure to declare is even considered as a criterion for identifying fraudulent taxpayers.
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The overlap
The reconciliation carried out between the tax administration and the rest of the various administrations such as the foreign exchange office, the CNSS, customs and other structures, makes it possible to identify inconsistencies and anomalies in the tax declarations of taxpayers. Therefore, potential shortfalls in reported amounts can be identified through this. The administration triggers checks to ensure this.
A constant loss result
Companies making regular losses are closely monitored by the tax authorities. Indeed, a business that is not economically viable must stop its activity in principle. Thus, companies that continue their activities while making deficits are considered taxpayers at high risk of fraud. They could indeed hide undeclared sales activities.
Previous presence of tax audit
It is possible that the DGI checks a company that has previously been checked in the past to ensure that the inconsistencies and failures of the previous check have not been repeated for other years.
The evolution of partners' current accounts
Even if it is very common to have recourse to partners to finance the growth of companies through their current accounts, the evolution of these current accounts of the partners is scrutinized by the tax authorities. This involves verifying the consistency of their development with the other elements of the company's balance sheet.
For example, the case of a company whose trade receivables keep increasing and whose partners' current accounts also increase over time, is not considered a normal situation. This situation, which can find a logical explanation in the financing of growth by the partners' current accounts, can also hide the collection of trade receivables made by the partners outside the accounts and not declared to the tax authorities.