"Federal Government Takes Aim at Binance: Cryptocurrency Giant Faces Tax Evasion Charges"

In a significant move aimed at upholding fiscal responsibility and safeguarding the economic integrity of the nation, the Federal Government has filed tax evasion charges against Binance, a prominent cryptocurrency exchange platform. The charges were formally lodged at the Federal High Court in Abuja by the Federal Inland Revenue Service (FIRS), marking a decisive step in addressing alleged fiscal infractions within the burgeoning digital asset sector.

The lawsuit, bearing the number FHC/ABJ/CR/115/2024, implicates Binance on four counts of tax evasion, signaling a firm stance by the government against financial misconduct and revenue leakage. Joining the crypto company as second and third defendants are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance who are currently in custody of the Economic and Financial Crimes Commission (EFCC).

The charges leveled against Binance span a spectrum of tax-related offenses, including 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. FIRS further alleges that Binance failed to register with the agency for tax purposes, thereby contravening existing tax regulations within the country.

One of the key accusations in the lawsuit revolves around Binance's purported 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. This section of the Act explicitly addresses the non-deduction and non-remittance of taxes, stipulating penalties and potential imprisonment for entities found in default.

The charges against Binance also outline specific instances where the company allegedly violated tax laws, such as the failure to issue invoices for VAT purposes, which obstructed the determination and payment of taxes by subscribers. According to legal experts, any company conducting business exceeding N25 million annually is obligated to pay taxes, including Company Income Tax (CIT) and Value Added Tax (VAT).

FIRS emphasizes that Binance's alleged infractions constitute a breach of Nigerian laws, warranting investigation and potential legal action. The agency underscores its statutory mandate to assess, collect, and account for revenue accruing to the Federation and administer relevant tax laws. The initiation of legal proceedings against Binance underscores the government's commitment to upholding financial transparency and accountability in the digital asset space.

It is noteworthy that Binance recently faced legal scrutiny in the United States, where it pleaded guilty to violating anti-money laundering laws, resulting in a settlement of $4.3 billion. The current tax evasion charges in Nigeria reflect the government's proactive stance in addressing financial misconduct and ensuring compliance with tax regulations in the digital currency sector.

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