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Binance Faces Tax Evasion Charges in Nigeria
Binance, the world’s largest cryptocurrency exchange, is currently embroiled in a tax evasion dispute with Nigerian authorities. The Federal Inland Revenue Service (FIRS) has announced charges against Binance, alleging various tax offenses.
Charges Filed Against Binance
- Four counts of tax evasion
- Non-payment of Value-Added Tax (VAT)
- Company Income Tax evasion
- Failure to file tax returns
- Complicity in aiding customers to evade taxes
The charges were filed at the Federal High Court in Abuja, with two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, currently detained by the Nigerian government under the Economic and Financial Crimes Commission (EFCC).
Specific Allegations Against Binance
The FIRS accuses Binance of neglecting to register for tax purposes and violating tax regulations in Nigeria. Specific instances of alleged violations include the failure to issue VAT invoices and hindering tax determination and payment by subscribers.
Under Nigerian law, any company conducting business exceeding N25 million annually is obliged to pay taxes like Company Income Tax (CIT) and collect and remit Value Added Tax (VAT).
Pressure on the Biden Administration
There is mounting pressure on the Biden administration to intervene and secure the release of the detained Binance executives. The U.S. Chamber of Digital Commerce has called for urgent diplomatic intervention to address what it considers a grave injustice.
Binance had to discontinue services involving the Nigerian naira (NGN) following regulatory scrutiny, with NGN withdrawals suspended after March 8. The Nigerian government imposed a $10 billion fine on Binance as part of a crackdown on the platform to stabilize the nation’s local currency.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
