FIRS Files Criminal Charges Against Binance for Tax Evasion and Financial Misconduct
Nigeria’s tax agency, the Federal Inland Revenue Service (FIRS), has taken legal action against Binance, a prominent cryptocurrency exchange platform, for alleged tax evasion and other related offenses. The FIRS filed criminal charges against Binance at a court in the capital territory, accusing the platform of various infractions including non-payment of Value Added Tax (VAT), failure to file tax returns, and evasion of Company Income Tax (CIT).
The FIRS also accused Binance of aiding customer tax evasion and facilitating tax evasion through its platform. In a statement, the FIRS highlighted that Binance had failed to register with FIRS for tax purposes and had not complied with existing Nigerian tax regulations.
One of the charges in the lawsuit relates to Binance’s alleged failure to collect and remit various categories of taxes to the federation, as required by Section 40 of the FIRS Establishment Act 2007. This section addresses non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.
FIRS also alleged that Binance neglected to register with the tax agency as required by law and that its operations violated established tax regulations in Nigeria. Tigran Gambaryan and Nadeem Anjarwalla, senior Binance executives, were named as the second and third defendants in the lawsuit, with Gambaryan reportedly escaping from detention in Nigeria.
The FIRS emphasized its commitment to enforcing tax regulations and combating financial misconduct within the cryptocurrency sector. The legal action against Binance comes amid a broader effort by Nigerian authorities to regulate the cryptocurrency industry and ensure compliance with tax laws.
PM News
