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Nigeria Charges Binance With Tax Evasion

1 min
Updated by Bary Rahma
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In Brief

  • Nigeria charges Binance with tax evasion, including VAT and Company Income Tax, as part of efforts to enforce tax compliance in the crypto market.
  • The Federal Inland Revenue Service (FIRS) alleges Binance failed to register for tax purposes and neglected issuing VAT invoices, key for tax collection.
  • This legal action follows Binance’s $4.3 billion fine for violating US anti-money laundering laws, highlighting its global crypto regulatory issues.
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Nigeria’s Federal Government has formally charged Binance, the world’s leading cryptocurrency exchange, with tax evasion.

This bold action, aimed at reinforcing fiscal discipline and securing the nation’s economic sovereignty, was initiated by the Federal Inland Revenue Service (FIRS) and is being adjudicated at the Federal High Court in Abuja.

Nigeria Accuses Binance of Tax Evasion

The FIRS has accused Binance and two of its high-ranking officials, Tigran Gambaryan and Nadeem Anjarwalla, of evading Value-Added Tax (VAT) and Company Income Tax, alongside failing to fulfill tax filing obligations. This case marks a significant chapter in Nigeria’s effort to ensure tax compliance within the cryptocurrency market.

Binance’s alleged transgressions include the non-payment of various taxes, contravening the FIRS Establishment Act 2007. Notably, accusations against the exchange include failing to register for tax purposes in Nigeria and neglecting to issue VAT invoices. These are critical for tax assessment and collection.

These actions have breached Nigerian tax laws and hampered the government’s tax collection mechanisms.

“Any company that conducts business exceeding 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 is obligated to pay taxes,” the FIRS noted.

Read more: 7 Best Binance Alternatives in 2024

This legal confrontation comes on the heels of Binance’s admission of guilt to violating US anti-money laundering regulations, resulting in a $4.3 billion fine. The current charges in Nigeria spotlight the crypto giant’s regulatory challenges. It emphasizes the Nigerian government’s resolve to combat financial impropriety and ensure tax compliance.

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Bary Rahma
Bary Rahma is a talented journalist who graduated from New York University with a degree in Journalism. In her extensive career, she has worked for renowned media outlets such as CNN, showcasing her investigative skills and storytelling abilities. Currently, Bary contributes her expertise to BeInCrypto, where she crafts insightful articles on the dynamic crypto industry. In addition to her work at BeInCrypto, she has contributed her expertise as a content writer for Binance, creating...
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