The Federal Government of Nigeria has filed tax evasion charges against Binance, the leading global crypto exchange, under plans to regulate the cryptocurrency in the country.
Nigeria’s Federal Inland Revenue Service (FIRS), which filed a lawsuit against Binance on March 25 with suit number: FHC/ABJ/CR/115/2024, accused Binance of four counts of tax evasion, including: non-payment of Value Added Tax (VAT), non-payment of Company Income Tax, failure to file tax returns and aiding customers in tax evasion through its platform
Two senior Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, are also named in the suit. They were under the custody of Nigeria’s Economic and Financial Crimes Commission (EFCC). However, reports coming out today suggest that they have escaped from custody.
Cryptocurrency usage has been rising in Nigeria, particularly among young adults. However, the regulatory landscape for cryptocurrencies remains unclear. The Nigerian government has not yet issued specific regulations for crypto taxation.
Cryptocurrency usage has been rising in Nigeria, particularly among young adults. However, the regulatory landscape for cryptocurrencies remains unclear. The Nigerian government has not yet issued specific regulations for crypto taxation.
One of the counts in the lawsuit relates 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 as amended.
The charges further specify instances where Binance allegedly violated tax laws which its cites the relevant provision that states thus: “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,” Dare Adekanmbi, Special Adviser, Media to the Executive Chairman, FIRS, said.
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