FG Drags Binance to Court for Tax Evasion
By Patience Ikpeme
The Federal Government has launched criminal proceedings against Binance, a leading cryptocurrency exchange platform.
The charges, officially lodged at the Federal High Court in Abuja, were revealed by the Federal Inland Revenue Service (FIRS) on Monday.
The lawsuit, identified as suit number FHC/ABJ/CR/115/2024, implicates Binance with a four-count accusation of tax evasion.
Notably, Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance, have been named as second and third defendants in the suit.
The charges leveled against Binance encompass various infractions, including non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and alleged complicity in aiding customers to evade taxes through its platform.
The Federal Government further accused Binance of failing to register with FIRS for tax purposes and contravening existing tax regulations within the country. Specifically, one of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes as stipulated by Section 40 of the FIRS Establishment Act 2007.
This legal action underscores the government’s commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector. The FIRS, empowered by relevant laws, is mandated to assess, collect, and account for revenue accruing to the Federation and administer pertinent tax laws.
The charges detail specific instances where Binance purportedly violated tax laws, including the failure to issue invoices for VAT purposes, hindering the determination and payment of taxes by subscribers.
Dare Adekanmbi, who issued and signed the statement for the FIRS noted that “any company conducting business exceeding N25 million annually is obligated to pay taxes like Company Income Tax (CIT) and collect and remit Value Added Tax (VAT)”, citing Binance’s failure to adhere to these regulations.
It’s worth noting that Binance previously pleaded guilty to flouting anti-money laundering laws in the United States in late 2023, settling for a plea bargain that incurred a substantial cost of $4.3 billion. This recent legal action further compounds the regulatory challenges faced by the cryptocurrency exchange platform, signaling intensified scrutiny from authorities globally.
