The Federal High Court in Abuja has postponed the arraignment of Binance Holdings Limited and its top officials, Tigran Gambaryan and Nadeem Anjarwalla, on a four-count tax evasion charge. The arraignment is now scheduled for April 8 due to the Economic and Financial Crimes Commission's (EFCC) inability to serve the charge on the company.
Anjarwalla, the Africa Regional Manager of Binance, had previously escaped custody, prompting the Federal Government to seek his extradition. The Administration of Criminal Justice Act, 2015, allows for his trial in absentia. During the recent court session, Gambaryan's counsel objected to the prosecution's attempt to serve the charge meant for the company to his client, stating that Gambaryan is not a representative of Binance Holdings Limited in Nigeria.
The EFCC argued that Gambaryan is indeed a representative of the company and urged the court to dismiss the objection. The court has adjourned the matter for ruling after hearing arguments from both sides. The EFCC has accused Binance of operating illegally in Nigeria by not registering to conduct business or paying taxes. It further alleged that Binance failed to issue invoices to subscribers on its trading platform for VAT purposes and also failed to deduct necessary VATs from operations involving cryptocurrencies.
The EFCC also accused the defendants of aiding subscribers to unlawfully refuse or neglect to pay taxes. The offences are punishable under various sections of the VAT Act of 1993, the FIRS Establishment Act of 2007, and the Companies Income Tax Act. Investigations into the alleged tax evasion have been concluded, according to a legal officer with the FIRS. The court had previously ordered Binance to provide comprehensive data on all Nigerian traders on its platform and its transaction history. The CBN Governor disclosed that $26 billion passed through Binance from unidentified sources, leading to investigations into possible money laundering and terrorism financing. Binance discontinued all transactions in naira on its exchange platform following failed negotiations with the government.
