BREAKING: FG Files Charges Against Binance For Alleged Tax Evasion 

BREAKING: FG Files Charges Against Binance For Alleged Tax Evasion 

In a decisive step aimed at strengthening fiscal responsibility and safeguarding the economic integrity of the nation, the Federal Government has taken action by initiating legal proceedings against Binance, a leading cryptocurrency exchange platform.

The charges, brought forth at the Federal High Court in Abuja, were officially disclosed on Monday by the Federal Inland Revenue Service (FIRS).

Tigran Gambaryan and Nadeem Anjarwalla, both high-ranking members of Binance who are currently in the custody of the Economic and Financial Crimes Commission (EFCC), have been named as co-defendants in the lawsuit.

According to a statement released by Dare Adekanmbi, Special Adviser on Media to the Executive Chairman of FIRS, the allegations against Binance include failure to pay Value-Added Tax (VAT), Company Income Tax, failure to submit tax returns, and complicity in aiding customers to evade taxes through its platform.

The Federal Government’s lawsuit also accuses Binance of neglecting to register with FIRS for tax purposes and violating existing tax laws within the country.

One of the charges specifically focuses on Binance’s purported failure to collect and remit various types of taxes to the government, as outlined in Section 40 of the FIRS Establishment Act 2007, as amended.

Section 40 of the Act addresses issues related to the non-deduction and non-remittance of taxes, specifying penalties and potential imprisonment for entities found in default.

The charges provide detailed instances where Binance is alleged to have breached tax regulations, including the failure to issue VAT invoices, hindering the determination and payment of taxes by its users.

“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria.

“According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).

“But Binance did not do this properly. So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” Adekanmbi said.

The Federal Government remains steadfast in its commitment to ensuring tax compliance and combating financial irregularities within the cryptocurrency industry.

FIRS, authorized by law to assess, collect, and report revenue accruing to the Federation, is mandated to administer relevant tax statutes.

It is noteworthy that Binance previously pleaded guilty to violating anti-money laundering laws in the United States towards the end of 2023, reaching a settlement through a plea bargain that imposed a financial penalty of $4.3 billion on the company.