The Nigerian government has taken a bold step in cracking down on tax evasion by initiating legal action against Binance, a leading cryptocurrency exchange platform. The Federal Inland Revenue Service (FIRS) has filed a lawsuit against Binance at the Federal High Court in Abuja, accusing the company of four counts of tax evasion.
In a statement released by Dare Adekanmbi, Special Adviser to the Executive Chairman of FIRS, the government emphasized its commitment to upholding fiscal responsibility and protecting Nigeria’s economic integrity. The lawsuit also names Tigran Gambaryan and Nadeem Anjarwalla, senior executives of Binance, who 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 facilitating tax evasion by its customers. The government also alleges that Binance failed to register with FIRS for tax purposes and violated existing tax regulations in the country.
One of the key accusations in the lawsuit is Binance’s alleged failure to collect and remit various taxes to the government, as required by the FIRS Establishment Act 2007. The Act stipulates penalties and potential imprisonment for entities that fail to comply with tax laws.
Specific instances of Binance’s alleged violations include not issuing invoices for VAT purposes, which hindered the determination and payment of taxes by its users. Adekanmbi highlighted that any company conducting business exceeding N25 million annually is obligated to pay Company Income Tax and Value Added Tax. However, Binance allegedly failed to fulfill these obligations, leading to its legal troubles.
The government’s move against Binance underscores its commitment to combating tax evasion and ensuring that all businesses operating in Nigeria adhere to tax laws. As the case unfolds in court, the outcome will have significant implications for the cryptocurrency industry and tax compliance in the country.
