The federal government has filed tax evasion charges against Binance, a prominent cryptocurrency exchange platform.
The charges were formally presented at the Federal High Court in Abuja, a statement by the Federal Inland Revenue Service (FIRS), revealed on Monday.
The lawsuit, identified as suit number FHC/ABJ/CR/115/2024, includes four counts of tax evasion, including failure to pay Value-Added Tax (VAT) and Company Income Tax, failure to file tax returns, and purported facilitation of tax evasion.
The government asserts that Binance neglected to register with FIRS for tax purposes and violated existing tax regulations in Nigeria.
One of the charges specifically points to Binance's alleged negligence in collecting and remitting various taxes as mandated by Section 40 of the FIRS Establishment Act 2007. This section outlines penalties, including potential imprisonment, for entities failing to comply with tax obligations.
The charges detail instances where Binance purportedly breached tax laws, such as not issuing invoices for VAT purposes, and hindering the accurate determination and payment of taxes by its clientele.
The FIRS underscored that any company conducting business exceeding N25 million annually, as per the Finance Act, is obligated to pay taxes like Company Income Tax (CIT) and collect and remit Value Added Tax (VAT). Binance, falling within this category, is accused of flouting these requirements, thus violating Nigerian laws and potentially facing further investigation and legal ramifications.
