The Federal Inland Revenue Service (FIRS) has initiated a criminal case against Binance, a prominent cryptocurrency platform, on charges of “tax evasion.” According to a statement released on Monday, the FIRS lodged the charge before the federal high court in Abuja on March 25.
This action, as stated by the FIRS, is intended to uphold fiscal responsibility and preserve the economic integrity of the nation.
Designated as suit number FHC/ABJ/CR/115/2024, the lawsuit implicates Binance with a four-count tax evasion accusation.
Furthermore, Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance and currently under the custody of the Economic and Financial Crimes Commission (EFCC), are named as second and third defendants in the suit.
The charges leveled against Binance include failure to remit value-added tax (VAT), company income tax, failure to file tax returns, and complicity in facilitating tax evasion by customers through its platform.
The federal government also alleges that Binance failed to register with the FIRS for tax purposes and violated existing tax regulations within the country.
The FIRS further specified instances where Binance purportedly violated tax laws, such as not issuing invoices for VAT purposes, hindering the determination and payment of taxes by subscribers.
According to the FIRS, any company conducting business exceeding N25 million annually is considered present in Nigeria and is obligated to pay taxes like Company Income Tax (CIT) and Value Added Tax (VAT).
The FIRS reiterated its commitment to enforcing tax regulations and combating financial impropriety within the cryptocurrency sector.
This action comes in the wake of the federal government’s allegations against Binance of manipulating foreign exchange rates, leading to increased scrutiny on cryptocurrency trading platforms.
Earlier, on February 28, two of Binance’s top executives—Nadeem Anjarwalla and Tigran Gambaryan—were detained by Nigerian authorities for weeks.
Subsequently, a federal high court in Abuja ordered Binance Holdings Limited to provide the EFCC with comprehensive data on all Nigerian traders using its platform.
