LAGOS, Nigeria (VOICE OF NAIJA) – The federal government has taken fresh legal charges against leading cryptocurrency exchange Binance, after one of the executives absconded while in custody.
The charges, announced by the Federal Inland Revenue Service (FIRS) on Monday, were submitted at the Federal High Court in Abuja.
Dare Adekanmbi, the special adviser on media to the executive chairman of the FIRS, signed the statement disclosing the allegations against Binance, which include four counts of tax evasion.
The lawsuit, with case number FHC/ABJ/CR/115/2024, names Binance alongside Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of the exchange.
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Among the charges are accusations 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 alleges that Binance failed to register with the FIRS for tax purposes and violated existing tax regulations within the country.
The charges emphasize Binance’s purported failure to collect and remit various categories of taxes to the federation, as mandated by Section 40 of the FIRS Establishment Act 2007.
This section outlines penalties, including potential imprisonment, for entities that fail to deduct and remit taxes. Specific instances of alleged violations, such as the failure to issue invoices for VAT purposes hindering tax determination and payment by subscribers, are outlined in the charges.
Speaking on the matter, Mr. Adekanmbi reiterated the government’s commitment to enforcing tax regulations and combating financial impropriety in the cryptocurrency sector.
He emphasized that any company transacting business exceeding N25 million annually, including Binance, is obligated to pay taxes like Company Income Tax (CIT) and Value Added Tax (VAT). Failure to comply constitutes a violation of Nigerian laws, subjecting the company to investigation and potential legal action.
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This development follows the detention of Binance executives, Nadeem Anjarwalla and Tigran Gambaryan, by Nigerian authorities in February. The executives were charged before a Magistrate Court in Abuja and remanded in custody by the court.
Binance’s non-compliance with court directives regarding data provision led to an extension of their remand.
Amidst this legal battle, Mr. Anjarwalla’s recent escape from custody has further heightened tensions surrounding the case.