Kelvin Bowoto
The Federal Government has begun criminal proceedings against Binance, a well-known cryptocurrency exchange site, in a decisive measure aimed at maintaining fiscal discipline and protecting the country’s economic integrity.
The accusations, brought to the Federal High Court in Abuja, were revealed on Monday by the Federal Inland Revenue Service (FIRS) in a statement released by the media aide to FIRS chairman, Dare Adekanmbi.
Binance was accused of four counts of tax evasion in the complaint, filed under FHC/ABJ/CR/115/2024.
Tigran Gambaryan and Nadeem Anjarwalla, both Binance senior executives, are named as the second and third defendants in the claim, alongside the cryptocurrency business.
The charges against Binance include failure to pay value-added tax (VAT), company income tax, failure to file tax returns, and involvement in assisting clients in evading taxes via its platform.
In the lawsuit, the Federal Government also accused Binance of failing to register with FIRS for tax purposes and violating existing tax legislation in the country.
One of the claims in the case is based on Binance’s claimed failure to collect and submit various types of taxes to the federation in accordance with Section 40 of the FIRS Establishment Act 2007 (amended).
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Section 40 of the Act specifically covers non-deduction and non-remittance of taxes, imposing penalties and potential imprisonment on defaulting entities.
The charges go on to identify particular instances in which Binance allegedly broke tax rules, such as failing to issue VAT invoices, impeding subscribers’ ability to calculate and pay their taxes.
“The Finance Act defines a corporation as present in Nigeria if it transacts more than N25 million in annual commerce.
“According to this rule, Binance belongs in that category. As a result, it is required to pay taxes such as company income tax (CIT), as well as collect and pay value-added tax.
“However, Binance did not handle this effectively. As a result, the corporation violated Nigerian laws and may face an investigation and legal action for this breach.
“The federal government remains resolute in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector,” the statement went on to say.
Binance reportedly pleaded guilty to violating anti-money laundering rules in the United States in late 2023, agreeing to a plea agreement that cost the business $4.3 billion.
Techrectory with Agency Report.
