Tinubu Govt Files Tax Evasion Charges Against Binance

The Federal Government has filed criminal proceedings against a prominent cryptocurrency exchange platform, Binance.

Dare Adekanmbi, the spokesman for the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zaccheus Adedeji, made this known in a statement on Monday in Abuja.

Adekambi stated that the decisive move against the platform is aimed at upholding fiscal responsibility and safeguarding the country’s economic integrity.

He said 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.

Adekambi stated that the charges were filed at the Federal High Court in Abuja, with suit number FHC/ABJ/CR/115/2024, implicating Binance with a four-count tax evasion accusation.

Joined in the suit as second and third defendants are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently under the custody of the Economic and Financial Crimes Commission (EFCC).

Adekambi said the charges levied against Binance include non-payment of Value-Added Tax (VAT) and Company Income Tax, failure to file tax returns, and complicity in aiding customers in evading taxes through its platform.

He noted that 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.

He said 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.

Adekambi said: “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.”

He stated that the government remains resolute in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.

Adekambi stated that the FIRS is empowered by the law setting it up and various others to assess, collect, and account for revenue accruing to the Federation and administer relevant tax laws.