FG Files Criminal Charges Against Binance
The Federal Government has launched legal action against Binance, a leading cryptocurrency exchange platform, on allegations of tax evasion.
These charges were filed at the Federal High Court in Abuja and were announced on Monday by the Federal Inland Revenue Service (FIRS).
The lawsuit, identified as suit number FHC/ABJ/CR/115/2024, accuses Binance of four counts of tax evasion.
FIRS, through a statement issued by Dare Adekanmbi, Special Adviser, Media to the Executive Chairman of the service, stated that this action aims to uphold fiscal responsibility and protect Nigeria’s economic integrity.
Alongside the cryptocurrency company, Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance, are named as second and third defendants in the suit. They are currently in the custody of the Economic and Financial Crimes Commission (EFCC).
The charges against Binance include failure to pay Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in assisting customers to evade taxes through its platform.
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The Federal Government also alleges that Binance failed to register with FIRS for tax purposes and violated existing tax regulations in Nigeria.
One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes as mandated by Section 40 of the FIRS Establishment Act 2007, as amended.
Section 40 of the Act addresses the consequences of non-deduction and non-remittance of taxes, including penalties and potential imprisonment for offending entities.
The charges provide specific instances where Binance purportedly violated tax laws, such as the failure to issue invoices for VAT purposes, thereby hindering subscribers’ ability to determine and pay taxes.
“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.
