The Federal Government has taken legal action against Binance, a leading cryptocurrency exchange platform, for alleged tax evasion.
The Federal Inland Revenue Service (FIRS) filed charges at the Federal High Court in Abuja, accusing Binance of four counts of tax evasion. This move aims to uphold fiscal responsibility and protect the country’s economic integrity.
Binance, along with two senior executives, Tigran Gambaryan and Nadeem Anjarwalla, who are currently in the custody of the Economic and Financial Crimes Commission, are named as defendants in the suit.
The charges against Binance include failure to pay Value-Added Tax and Company Income Tax, failure to file tax returns, and aiding customers in evading taxes through its platform.
The government also accuses Binance of not registering with FIRS for tax purposes and violating existing tax regulations.
One of the counts in the lawsuit relates to Binance’s alleged failure to collect and remit various taxes to the federation, as required by the FIRS Establishment Act 2007. The Act stipulates penalties and potential imprisonment for entities that fail to deduct and remit taxes.
The charges outline specific instances where Binance allegedly violated tax laws, such as not issuing invoices for VAT purposes, hindering the determination and payment of taxes by subscribers.
According to FIRS, any company conducting business exceeding N25 million annually is obligated to pay taxes, including Company Income Tax and Value Added Tax. However, Binance is accused of not complying with these regulations.
FIRS, empowered by relevant tax laws, is responsible for assessing, collecting, and accounting for revenue accruing to the Federation.
This legal action follows Binance’s admission of guilt for violating anti-money laundering laws in the United States in late 2023, resulting in a $4.3 billion settlement through a plea bargain.
