In a significant move aimed at upholding fiscal responsibility and preserving the economic integrity of the nation, the Federal Government of Nigeria has taken legal action against Binance, a prominent cryptocurrency exchange platform.
The charges, formally lodged at the Federal High Court in Abuja, were announced on Monday by the Federal Inland Revenue Service (FIRS).
The lawsuit, designated as suit number FHC/ABJ/CR/115/2024, implicates Binance with a four-count tax evasion accusation. Alongside Binance, Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of the company, are named as second and third defendants in the suit. They are currently held in custody by the Economic and Financial Crimes Commission (EFCC).
The charges leveled against Binance include allegations of 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. Furthermore, the Federal Government accuses Binance of neglecting 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 purported 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 explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.
