FG Charges Binance With Tax Evasion

Amidst the executive's escape, Nigeria announces charges against Binance

The Federal Government has taken a bold stand to protect the nation's economy and budgetary prudence by filing criminal charges against Binance, a well-known cryptocurrency exchange platform.

The Federal Inland Revenue Service (FIRS) revealed the accusations on Monday. They were filed in the Federal High Court in Abuja.

The case, which has the case number FHC/ABJ/CR/115/2024, accuses Binance of four counts of tax evasion.

Tigran Gambaryan and Nadeem Anjarwalla, two senior officials of Binance who were in the custody of the Economic and Financial Crimes Commission (EFCC), have joined the cryptocurrency company as second and third defendants in the lawsuit, though Anjarwalla reportedly escaped custody.

FIRS said in a statement released on Monday by Dare Adekanmbi Special Adviser, Media to the Executive Chairman, that Binance is facing charges related to failure to file tax returns, non-payment of company income tax, value-added tax (VAT), and complicity in helping customers evade taxes using its platform.

The Federal Government also charged Binance in the lawsuit with breaking national tax laws and failing to register with FIRS for tax purposes.

Section 40 of the FIRS Establishment Act 2007 as amended stipulates that Binance is required to collect and pay certain sorts of taxes to the federation. This is one of the counts in the case.

The Act's Section 40 specifically addresses the failure to deduct and remit taxes, imposing fines and possibly even jail time on noncompliant corporations.

The accusations go on to describe particular incidents in which Binance is said to have broken tax rules, such as neglecting to provide invoices for value-added tax (VAT) purposes, which prevented subscribers from determining and paying their 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.

The Federal Government is unwavering in its resolve to enforce adherence to tax laws and counter financial misconduct in the bitcoin industry.

According to the statute that established it and other legislation, FIRS is able to evaluate, gather, and record revenue that belongs to the Federation as well as manage the applicable tax regulations.

In late 2023, Binance entered a guilty plea to breaking US anti-money laundering rules, agreeing to a plea deal that would have cost the business $4.3 billion.