Federal Government Files Tax Evasion Charges Against Binance

The Federal Government has initiated legal proceedings against Binance, a leading cryptocurrency exchange platform.

Announced by the Federal Inland Revenue Service (FIRS) on Monday, the charges were formally presented at the Federal High Court in Abuja. The lawsuit, assigned suit number FHC/ABJ/CR/115/2024, implicates Binance with four counts of tax evasion.

Accompanying Binance as second and third defendants in the case are Tigran Gambaryan and Nadeem Anjarwalla, senior executives currently detained by the Economic and Financial Crimes Commission (EFCC).

The allegations against Binance include 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.

Additionally, the government 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 pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation, as mandated by Section 40 of the FIRS Establishment Act 2007.

The FIRS stated, “Any company that conducts business exceeding 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 is obligated to pay taxes like Company Income Tax (CIT) and also collect and remit Value Added Tax (VAT). However, Binance did not adhere to these requirements, thus violating Nigerian laws and potentially facing investigation and legal action for this infraction.”

The Federal Government asserts its unwavering commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.

FIRS is empowered by law to assess, collect, and account for revenue accruing to the Federation and administer relevant tax laws.

Binance had previously pleaded guilty to violating anti-money laundering laws in the United States in late 2023, resulting in a plea bargain agreement and a hefty fine of $4.3 billion.