The key entity in the fight against tax fraud will soon become a reality. Although it has been provided for in the General Tax Code (CGI code) for several years, its creation was subject to a decree defining its organization and operating procedures.
The decree has just been examined by the government council, which met on Monday December 25, a clear sign of the current Tax Directorate’s (DGI’s) determination to fight effectively against all forms of fraud and irregularities.
The Tax Offenses Commission is an advisory body, but it is a prerequisite for taking criminal action against tax fraud, except in the case of fictitious invoices (article 231 of the CGI code). In this specific case, and since the adoption of the Finance Act 2021, the Director General of Taxes no longer needs to go through the commission process. He can refer the matter directly to the public prosecutor, and has in fact done so in several cases.
This body is chaired by a magistrate and comprises two representatives of the tax authorities and two representatives of taxpayers chosen from the most representative professional organizations. Members are appointed by order of the Head of Government.
Thus, in the event of a complaint being lodged against an infringement by the tax authorities, the Minister of Finance or any person delegated for this purpose must first seek the opinion of the Commission for the implementation of the sanctions provided for in Article 192 of the CGI.
The recently introduced draft decree gives the commission a headquarters in Rabat, under the direct responsibility of the Head of Government. The General Secretariat will be entrusted to the Ministry of Finance. Commission members will be appointed by the Head of Government for a three-year term. In the operation of the commission, the General Secretariat will be responsible for receiving complaints relating to infringements, preparing meetings, drafting minutes, and transmitting the commission’s opinion to the Minister of Finance or the person delegated for this purpose, who could be the Director General of Taxes.
The Tax Offenses Commission will hold its meetings at the initiative of the Ministry of Finance in its capacity as Secretary General. The creation of this latest piece in the anti-fraud jigsaw puzzle will mark a major milestone in the DGI’s war against several forms of tax offense under article 192 of the CGI. The taxman’s hands were tied because he had to work through an entity that did not yet exist. In a few weeks’ time, this will no longer be the case.
Hassan EL ARIF
