The Federal Government has commenced legal proceedings against Binance, a prominent cryptocurrency exchange platform, for alleged tax evasion.
According to Mr. Dare Adekanbi, the Special Adviser (Media) to the Chairman of the Federal Inland Revenue Service (FIRS), the charges were filed at the Federal High Court in Abuja. The lawsuit, identified as suit number FHC/ABJ/CR/115/2024, accuses Binance of four counts of tax evasion.
Additionally, Tigran Gambaryan and Nadeem Anjarwalla, senior executives of Binance currently detained by the Economic and Financial Crimes Commission (EFCC), are named as second and third defendants in the suit.
The charges against Binance include failure to pay Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform. The Federal Government also alleges that Binance failed to register with FIRS for tax purposes and violated existing tax regulations in 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. This section outlines penalties and potential imprisonment for entities that fail to deduct and remit taxes.
Furthermore, the charges specify instances where Binance purportedly violated tax laws, such as not issuing invoices for VAT purposes, which hinders the determination and payment of taxes by subscribers.
Adekanbi explained that any company conducting business exceeding N25 million annually is considered to be present in Nigeria under the Finance Act, making it liable for taxes like Company Income Tax (CIT) and Value Added Tax (VAT).
He emphasized that Binance failed to comply with these regulations, thereby breaking Nigerian laws and potentially facing investigation and legal action.
The Federal Government reaffirmed its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.
