In a lawsuit against cryptocurrency exchange Binance Holdings Limited, the Federal Government of Nigeria is seeking $79.51 billion and ₦231 million in damages for alleged economic losses brought on by the company’s activities in the nation. The Federal High Court in Abuja received a complaint from the Federal Inland Revenue Service (FIRS) that also requests $2.001 billion in unpaid income taxes for 2022 and 2023.CONTINUE FULL READING>>>>>
In the lawsuit, which is designated FHC/ABJ/CS/1444/2024, Binance and two of its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of breaking Nigerian financial legislation and neglecting to register with the FIRS for tax compliance. This is the third time that Binance has been the target of legal action in Nigeria. Judge Emeka Nwite of the Federal High Court in Abuja has previously accused the corporation with tax evasion, money laundering, and foreign exchange offenses by the FIRS and the Economic and Financial Crimes Commission (EFCC).
The lawsuit imposes a number of financial penalties, including a 10% penalty for 2022 and 2023 tax nonpayment, an annual interest rate of 26.75% based on the lending rate set by the Central Bank of Nigeria (CBN), and further fines for Binance’s refusal to register its business operations in Nigeria. Furthermore, according to the Nigerian authorities, Binance has been operating in the nation for more than six years without the required registration, in violation of several financial rules.
Jimada Yusuf, a member of the Office of the National Security Adviser’s (NSA) Special Investigation Team, testified that Binance executives acknowledged having 386,256 active Nigerian users, $21.6 billion in 2023 trading volume, and $35.4 million in net revenue from Nigerian transactions. Despite a Federal High Court ruling requiring them to deliver the data to the FIRS through the EFCC, the NSA alleges that Binance refused to produce comprehensive business records covering six years.
A court order requiring Binance and its officials to file income tax forms for 2022 and 2023, a declaration that Binance must pay annual corporate income tax for its operations in Nigeria, and an order requiring Binance to pay $2.001 billion in taxes are all sought by the FIRS in the complaint. The penalties also include a total of $79.51 billion and ₦231 million in compensation for economic damages, as well as penalties such as 10% yearly interest and a 26.75% CBN lending rate until all taxes are paid. “Political disputes must be settled through legal means, and law enforcement must maintain its impartiality,” Baxter said. Baxter was accompanied by Second Secretary Political Katherine Fernandes and Senior Political Adviser Wale Adebajo.CONTINUE FULL READING>>>>>
