How to avoid a tax audit? 5 mistakes to avoid triggering an audit

A tax audit can arise at any time, for no particular reason and without warning.

However, there are certain factors that can attract the attention of the tax authorities and expose you to a tax audit.

To help you avoid tax audits in advance, we've listed below 5 mistakes or behaviors you should avoid making in order to avoid a tax audit.


1 . Submitting tax returns after the deadline

Submitting your tax returns after the due date, or not submitting them at all, can lead to reminders from the tax authorities, so you need to keep a close eye on your business.

Avoid!

2 . Inconsistency of your declaration with that of your customers/suppliers or with the data collected by the authorities.

Rest assured that the financial data entered in your accounts is correct, to avoid any discrepancies with the data recorded by the tax authorities, your suppliers or your customers.

Proofread and check all your figures. Everything must be consistent!

3. A debit current account

Your company can't lend you money, which could expose you to heavy legal penalties.

If this is the case, the tax authorities will repeat it in your accounts to the extent that it appears in your balance sheet.

Avoid!

4. Inconsistent variations in your company's sales.

The tax authorities may be alerted by differences in figures that are deemed too large.

Take care!

5. Frequent relocation of your company's headquarters.

Some managers are tempted to change their company address on a regular basis. Each time they move, the tax authorities are notified and look for the reason for the change.

Frequent head office transfers can therefore be a source of concern for tax authorities.

We would be delighted to audit your legal, accounting and tax affairs.

Best regards,

Faithfully yours,

Ilham Taha-Bouamri
Chartered accountant and tax specialist

Two tax advantages to be seized by January 31!

Our aim is to inform you in good time of the legal and tax provisions that will enable you to minimize your taxes as much as possible. We therefore invite you to take note of this informative note and, if necessary, to act immediately, which focuses on two tax advantages to be taken advantage of before 01/31/2022

1- Declaration of unemployment

Article 15 of law no. 47-06 on local authority taxation.

If, in the 2021 financial year, your establishment has suffered partial or total unemployment, you must file a declaration indicating your business tax identification number, the location of your establishment, the reasons, the supporting documents and the description of the unemployed part.

This formality must be carried out no later than Monday, January 31, 2022.

Thus, in the event of partial or total unemployment of a company, for a period of one calendar year, the taxpayer can obtain business tax rebate or discharge.

2- Temporary cessation of activity

Since January 1, 2018, companies have been able to file a declaration of temporary cessation of activity with the Direction Générale des Impôts.

This measure enables the company to freeze its activity without going into liquidation.

This statement must be signed no later than Monday, January 31, 2022for a period of two years, renewable for a single financial year.

During this standby period, the company is exempt from paying the minimum contribution.

The company also benefits, under Article 150-bis of the 2019 Finance Act, from the option of filing a single annual VAT return.

Should you require any further information on this subject, please do not hesitate to contact our legal and tax team.

Don't hesitate to contact us for a study of your case and relevant advice on tax optimization for your business.

The accounting firm Fiscal & Légal Team can assist you in accounting, taxation and legal matters, for example:

Faithfully yours,

Ilham Taha-Bouamri

Chartered accountant and tax specialist

Pool the risks of your business by opting for international trading!

What if you opted for triangular trade or international trading to pool the risks of your business?

Dear readers,

In order to minimize inventory risks As a result, many investors are increasingly turning to triangular or international trade.

International trading involves the acquisition by a resident trader, whether an individual or a legal entity duly registered in the Commercial Register. A good from a non-resident supplier for resale to a foreign customer at a profit. And without the said good being imported into Morocco.

A legislative and regulatory framework has also been put in place to encourage this practice.

Previously, this operation required authorization from the foreign exchange office. But with the globalization of economies, this activity has been liberalized.

As a result, traders can now pay their non-resident suppliers well before collecting receivables from their non-resident customers.

This incentive is only subject to a formal obligation: the existence of a profit margin (difference between selling price and cost).

Schematic illustration of International Trading

Suppose :

  • X a foreign company,
  • Y a Moroccan company and
  • CF the end customer.

The Moroccan company (Y) wishes to export goods directly from the foreign company (X) to its end customer outside Morocco as part of a sale.

However, X will bill Y purchase of parts delivered direct on the country of the end customer.

Final payment will therefore be made between the end customer and Moroccan company Y.

We are therefore dealing with two types of flow: a flow of money and a flow of goods.

To do this, the retailer must be registered with the foreign exchange office and has an "international trading" foreign exchange account .

Indeed, in accordance with article 17 of the General Instruction on Foreign Exchange Operations 2022 (IGOC),
"... International traders wishing to settle invoices for the purchase of goods before repatriating the proceeds of resale are also required to register with the Foreign Exchange Office...".

Article 83 of IGOC 2022 stipulates that "banks are authorized to open an account for each currency in the name of the trader, dedicated exclusively to the management of international trading operations".
If you have any further questions on this subject, our legal and tax team will be happy to advise you in your best interests.

Faithfully yours,

Ilham Taha-Bouamri
Chartered accountant and tax specialist