Due to accusations of tax evasion, the Federal Government has filed lawsuits against well-known cryptocurrency exchange site Binance.
The Federal Inland Revenue Service (FIRS) revealed the accusations on Monday, after they were filed at the Federal High Court in Abuja.
The case, which is filed under the file number FHC/ABJ/CR/115/2024, charges Binance with four different counts of tax evasion. In a statement released on Monday, FIRS said that the action is intended to protect Nigeria’s economic integrity and maintain budgetary discipline.
Tigran Gambaryan and Nadeem Anjarwalla, two senior officials of Binance, who are presently under the jurisdiction of the Economic and Financial Crimes Commission (EFCC), have joined Binance as second and third defendants.
Binance is accused of failing to file tax returns, not paying company income tax, value-added tax (VAT), and assisting users in avoiding taxes by using its platform.
In addition, Binance is accused in the case of breaking national tax laws and not registering with FIRS for tax purposes.
As required by Section 40 of the FIRS Establishment Act 2007 as modified, Binance is accused of failing to collect and return certain categories of taxes to the federation, according to one of the charges in the case.
The accusations go on to describe particular incidents in which Binance is said to have broken tax rules, including neglecting to provide invoices for value-added tax purposes, which impeded subscribers’ ability to calculate and pay their taxes.
Any company performing business in excess of N25 million yearly is regarded to be present in Nigeria and is expected to pay taxes such as Company Income Tax (CIT) and collect and pay Value Added Tax (VAT), according to Dare Adekanmbi, Special Adviser, Media to the Executive Chairman of FIRS.
Adekanmbi underlined that Binance would face an inquiry and judicial action if it disobeys Nigerian tax regulations.
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