The Federal Inland Revenue Service (FIRS) has filed a lawsuit against Binance Holdings Limited, seeking $79.51 billion and ₦231 million in compensation for alleged economic losses caused by the cryptocurrency exchange company’s operations in Nigeria.
The lawsuit, filed at the Federal High Court in Abuja, also demands an additional $2.001 billion in unpaid income taxes for 2022 and 2023.
Binance and its executives, Tigran Gambaryan and Nadeem Anjarwalla, are accused of failing to register with the FIRS for tax compliance and violating Nigerian financial regulations.
This lawsuit marks the third legal action against Binance in Nigeria, with the FIRS and the Economic and Financial Crimes Commission (EFCC) having already charged the company with tax evasion, money laundering, and foreign exchange violations.
The Nigerian government alleges that Binance has been operating in the country for over six years without proper registration, violating multiple financial laws.
According to an affidavit, Binance executives admitted to having 386,256 active Nigerian users, a trading volume of $21.6 billion in 2023, and net revenue of $35.4 million from Nigerian transactions.
The FIRS is seeking a declaration that Binance must pay annual corporate income tax for its operations in Nigeria, as well as a court order compelling the company and its executives to file income tax returns for 2022 and 2023.
The lawsuit also seeks penalties, including 10% annual interest and a 26.75% Central Bank of Nigeria (CBN) lending rate, until all taxes are paid.
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