A high-stakes tax investigation has rocked the real estate industry in Morocco, with prominent developers in Casablanca and Marrakech coming under intense scrutiny for alleged tax evasion and fraud. The probe, fueled by evidence from lawsuits and on-site audits, has revealed a web of deceit involving underreported income, manipulated invoices, and shady practices like noir dealings through subcontractors.
Developers are accused of undervaluing construction work, inflating expenses, and evading taxes on property sales, particularly in lucrative markets like Casablanca, Marrakech, and Tangier. The investigation has exposed a pattern of deception, with discrepancies between financial records and property transfers, including suspicious purchases of luxury vehicles at inflated prices.
Facing hefty tax liabilities, developers are now scrambling to negotiate settlements with tax authorities, especially those with ties to public entities and major banks. As the investigation widens to include sales of residential units, the industry is grappling with the fallout of a scandal that threatens to tarnish its reputation.