Binance, a big player in cryptocurrency, is in hot water as Nigeria’s Federal Government takes legal action against it for supposedly dodging taxes.
The Federal Inland Revenue Service (FIRS) filed charges at the Federal High Court in Abuja, accusing Binance of not paying Value-Added Tax (VAT), Company Income Tax (CIT), failing to file tax returns, and helping customers dodge taxes through its platform.
The suit also ropes in Tigran Gambaryan and Nadeem Anjarwalla, top Binance executives, who are reportedly in custody for questioning. FIRS claims Binance didn’t register for taxes and violated Nigerian tax laws.
The FIRS says any company making over N25 million a year in Nigeria should pay taxes, including CIT and VAT. Legal experts note Binance didn’t follow this rule and could face consequences.
This move by FIRS aims to show the cryptocurrency industry it means business when it comes to taxes. The allegations have sparked debates about the government’s motives and evidence against Binance.
In a twist, one of the detained Binance executives, Nadeem Anjarwalla, reportedly escaped custody. His escape raises questions about security.
Binance’s troubles in Nigeria come after it admitted to criminal money laundering charges in the US, agreeing to pay a hefty fine. The founder, Changpeng Zhao, also pleaded guilty, adding to Binance’s international scrutiny.
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