Federal Government Charges Binance with Tax Evasion


The Federal Government of Nigeria has taken decisive action against cryptocurrency exchange giant Binance for alleged tax evasion.

The charges, filed at the Federal High Court in Abuja by the Federal Inland Revenue Service (FIRS), implicate Binance with four accusations of tax evasion, marking a crucial step in ensuring compliance with tax regulations.

The lawsuit, bearing number FHC/ABJ/CR/115/2024, not only targets Binance but also names two senior executives, Tigran Gambaryan and Nadeem Anjarwalla, currently in the custody of the Economic and Financial Crimes Commission (EFCC).

Among the charges leveled against Binance are non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

The lawsuit further accuses Binance of failing to register with FIRS for tax purposes and violating existing tax regulations within the country.

Also,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.

Meanwhile,Specific instances of alleged violations, such as the failure to issue invoices for VAT purposes, are outlined, indicating a pattern of non-compliance with tax obligations.

According to Nigerian tax laws, any company conducting business in excess of N25 million annually is required to pay taxes, including Company Income Tax (CIT) and Value Added Tax (VAT). Binance’s purported failure to fulfill these obligations underscores the gravity of the situation and the potential legal consequences it faces.

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“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.

Moreover,FIRS, empowered by relevant tax laws, is tasked with assessing, collecting, and accounting for revenue accruing to the Federation and administering relevant tax laws.

However,Binance pleaded guilty to flouting anti-money laundering laws in the United States in late 2023, settling for a plea bargain that cost the company $ 4.3 billion.

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