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FG files tax evasion charges against Binance

Mar 25, 2024

The Federal Government on Monday, March 25,  initiated proceedings against Binance, a prominent cryptocurrency exchange platform over tax evasion.


The charges were filed at the Federal High Court in Abuja by the Federal Inland Revenue Service.


In the suit with number: FHC/ABJ/CR/115/2024, FIRS implicated Binance with four tax evasion accusations adding that it was a decisive move aimed at upholding fiscal responsibility and safeguarding the economic integrity of the country.


Joined with the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently under the custody of the Economic and Financial Crimes Commission.


The charges levied against Binance include non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.


In the suit, the Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.


One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.


Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties, and potential imprisonment for defaulting entities.


The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers.


“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria.


“According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).


“But Binance did not do this properly. So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” Adekanmbi said.


This comes after one of the two Binance executives detained in Nigeria for alleged tax evasion and other offences, Nadeem Anjarwalla, reportedly escaped from police custody. 

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