The Federal Inland Revenue Service has initiated proceedings against Binance, a prominent cryptocurrency exchange platform over tax evasion.
In the suit filed on Monday at the Federal High Court in Abuja with number FHC/ABJ/CR/115/2024, the FIRS implicated Binance with four tax evasion accusations.
The service said it was a decisive move aimed at upholding fiscal responsibility and safeguarding the economic integrity of the country.
Also joined in the suit as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla – both senior executives of Binance – recently arrested by the Economic and Financial Crimes Commission (EFCC).
Even though, Grassroots Parrot gathers on Monday morning that one of the Binance executives reportedly escaped from the custody of the anti-graft agency.
The charges levied against Binance include non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.
In the suit, the Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.
READ ALSO: Naira Rebounds to N1,400/$ at Parallel Market
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 stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.
Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.
The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers.
“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.
FIRS, by the law setting it up and various others, is empowered to assess, collect and account for revenue accruing to the Federation and administer relevant tax laws.
Binance pleaded guilty to flouting anti-money laundering laws in the United States in late 2023, settling for a plea bargain that cost the company $ 4.3 billion.