The Federal Government has commenced legal action against Binance, a cryptocurrency exchange platform, filing charges at the Federal High Court in Abuja. This move was revealed by Mr. Dare Adekanbi, the Special Adviser (Media) to the Chairman of the Federal Inland Revenue Service (FIRS), on Monday. The lawsuit, designated as suit number FHC/ABJ/CR/115/2024, accuses Binance of tax evasion across four counts.
In addition to Binance, the lawsuit names Tigran Gambaryan and Nadeem Anjarwalla, senior executives of Binance currently in the custody of the Economic and Financial Crimes Commission (EFCC), as the second and third defendants. The charges include allegations 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.
The Federal Government also accuses Binance of failing to register with FIRS for tax purposes and violating existing tax regulations within the country. One of the counts in the lawsuit relates to Binance's alleged failure to collect and remit various categories of taxes as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.
Adekanmbi emphasized that any company conducting business exceeding N25 million annually, as per the Finance Act, is required to pay taxes like Company Income Tax (CIT) and collect and pay Value Added Tax (VAT). He noted that Binance did not comply with these regulations, which constitutes a violation of Nigerian laws. The Federal Government remains committed to ensuring compliance with tax regulations and fighting financial impropriety within the cryptocurrency sector.
