Nigeria’s Federal Government Charges Binance with Tax Evasion

In a bold move to enforce fiscal discipline and safeguard its economic framework, the Nigerian Federal Government has initiated legal proceedings against the renowned cryptocurrency exchange, Binance.

Filed at the Federal High Court in Abuja by the Federal Inland Revenue Service (FIRS), the case (identified as FHC/ABJ/CR/115/2024) accuses Binance and two of its top executives, Tigran Gambaryan and Nadeem Anjarwalla, of evading taxes. Both executives are currently detained by the Economic and Financial Crimes Commission (EFCC).

Binance faces a four-count charge, including failure to pay Value-Added Tax (VAT) and Company Income Tax, neglecting to file tax returns, and assisting customers in tax evasion. Additionally, the government criticizes Binance for not registering for tax purposes and for flouting the country’s tax laws.

Particularly, one charge highlights Binance’s alleged failure to comply with the FIRS Establishment Act 2007 (as amended), which mandates the deduction and remittance of various taxes. This includes not issuing VAT invoices, thereby hindering tax assessment and payment.

The FIRS emphasized that companies generating over N25 million annually within Nigeria, like Binance, must comply with tax obligations such as Company Income Tax and VAT collection and remittance. Binance’s non-compliance has prompted legal scrutiny and potential repercussions.

This legal challenge reflects the Federal Government’s resolve to enforce tax laws and address financial irregularities in the burgeoning cryptocurrency sector. It also follows Binance’s recent guilty plea in the United States for breaching anti-money laundering regulations, resulting in a fine of $4.3 billion.