The Federal Government of Nigeria has filed tax evasion charges against cryptocurrency company, Binance.

The charge was filed before the Federal High Court in Abuja on Monday, March 25, 2024 by the Federal Inland Revenue Service (FIRS).

The FIRS disclosed this in a statement on Monday.

The FIRS said the move is aimed at upholding fiscal responsibility and safeguarding the economic integrity of the country.

The lawsuit implicates Binance with a four-count tax evasion accusation.

Named as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently held in custody by the Economic and Financial Crimes Commission (EFCC).

The charges leveled against Binance include allegations of non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

The Federal Government accused Binance of neglecting to register with FIRS for tax purposes and contravening existing tax regulations within the country.

According to the FIRS, Binance’s purportedly  failed to collect and remit various categories of taxes to the Nigerian government as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.

The charges outlined specific instances where Binance allegedly violated tax laws, such as the failure to issue invoices for VAT purposes, thereby impeding the determination and payment of taxes by subscribers.

“Any company that conducts business exceeding N25 million annually is deemed, by the Finance Act, to be present in Nigeria,” the FIRS noted in a statement.

“According to this rule, Binance falls into that category. So, it is obligated to pay taxes like Company Income Tax (CIT) and also collect and remit Value Added Tax (VAT). However, Binance did not adhere to these requirements, thus violating Nigerian laws and potentially facing investigation and legal action for this infraction,” it added.