Binance was sued by Nigeria’s tax agency for tax evasion. The Federal Inland Revenue Service (FIRS) of Nigeria has taken legal action against the global cryptocurrency exchange platform Binance for alleged tax evasion.
Binance Sued by Nigeria’s Tax Agency
The Federal Inland Revenue Service (FIRS) in Nigeria has filed a lawsuit against the global cryptocurrency exchange platform Binance, accusing it of tax evasion.
The suit, filed in Abuja on March 25, 2024, alleges that Binance violated four tax laws. And this is including failure to pay company income tax and value-added tax (VAT), as well as noncompliance with tax return filing obligations. Additionally, the FIRS claims that Binance assisted its users in evading taxes through its platform.
Two Senior Executives of Binance Named As Defendants in the Lawsuit
Two senior executives of Binance, Tigran Gambaryan and Nadeem Anjarwalla, were also named as defendants in the lawsuit. Anjarwalla, who is British-Kenyan, reportedly escaped custody on March 22, 2024, after being detained by the Office of Nigeria’s National Security Adviser (ONSA). The ONSA is seeking collaboration with Interpol to obtain a warrant for his arrest.
Binance Failed To Register With the Authorities for Tax Purposes
The FIRS alleges that Binance failed to register with the authorities for tax purposes and violated various tax laws in Nigeria. This includes not collecting and remitting taxes to the Federal Government as mandated by law.
The suit also claims that Binance obstructed tax determination and payment by users on its platform by not issuing invoices for VAT purposes.
The Discontinuation of All Transactions and Trading In Naira on Binance
Binance recently announced the discontinuation of all transactions and trading in Nigeria’s local currency, the naira. The company also stated that any remaining balances would be automatically converted into tether. Tether is a cryptocurrency stablecoin pegged to the U.S. dollar.
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