The Federal Government of Nigeria has commenced criminal proceedings against Binance, a prominent cryptocurrency exchange platform.
As revealed by Mr Dare Adekanbi, the Special Adviser (Media) to the Chairman of the Federal Inland Revenue Service (FIRS), this move marks a step in addressing tax-related concerns within the cryptocurrency sphere.
The legal action, formally lodged at the Federal High Court in Abuja, bears the designation suit number FHC/ABJ/CR/115/2024.
Binance finds itself at the centre of a four-count indictment, alongside senior executives Tigran Gambaryan and Nadeem Anjarwalla, currently held by the Economic and Financial Crimes Commission (EFCC).
The charges levelled against Binance encompass a spectrum of alleged tax infractions, including failure to remit Value-Added Tax (VAT), Company Income Tax, failure to file requisite tax returns, and purported complicity in facilitating tax evasion among its clientele.
Among the accusations outlined in the lawsuit, the Federal Government has also cited Binance for its failure to register with the FIRS for tax purposes, thus contravening established tax protocols within Nigeria.
A particular focus of the charges centres on Binance’s purported negligence in collecting and remitting various tax categories to the federal coffers, as stipulated by Section 40 of the FIRS Establishment Act 2007, as amended.
This section delineates penalties, including potential imprisonment, for entities found in default of tax obligations.
Moreover, the charges delineate specific instances where Binance allegedly flouted tax laws, notably by failing to issue VAT invoices, thereby impeding the accurate assessment and payment of taxes by its users.
Mr Adekanbi stressed the significance of adherence to tax regulations, emphasizing that any company conducting business exceeding N25 million annually is obligated under the Finance Act to comply with Nigerian tax laws.
Binance, falling within this bracket, is thus subject to Company Income Tax (CIT) obligations, as well as the collection and remittance of Value Added Tax (VAT).
The Federal Government’s resolve in ensuring tax compliance and combating financial malfeasance within the cryptocurrency domain remains steadfast, with this legal action signalling a proactive stance in upholding fiscal integrity.