- FG files tax evasion charges against Binance
The Office of the National Security Adviser has confirmed that the detained Binance executive, Nadeem Anjarwalla, escaped from custody.
The ONSA on Monday said Anjarwalla, who was a suspect in the probe into the activities of Binance, escaped on Friday.
Confirming the development in a statement the Head, Strategic Communication, ONSA, Zakari Mijinyawa, said a preliminary investigation showed that Anjarwalla fled Nigeria using a smuggled passport.
He noted that efforts were ongoing to arrest the suspect.
The statement read, “The Office of the National Security Adviser confirms that Nadeem ANJARWALLA, a suspect in the ongoing criminal probe into the activities of Binance in Nigeria has escaped from lawful custody on Friday, March 22, 2024.
“Upon receiving this report, this office took immediate steps, in conjunction with relevant security agencies, MDAs, as well as the international community, to apprehend the suspect. Security agencies are working with Interpol for an international arrest warrant on the suspect.
“Preliminary investigation shows that Mr Anjarwalla fled Nigeria using a smuggled passport.”
Mijinyawa noted that those responsible for the custody of Anjarwalla had been arrested.
He noted that the investigation was ongoing to unravel the circumstances surrounding his escape.
“The personnel responsible for the custody of the suspect have been arrested, and a thorough investigation is ongoing to unravel the circumstances that led to his escape from lawful detention.
“Recall that the Federal Government of Nigeria, like other governments around the world, has been investigating money laundering and terrorism financing transactions perpetrated on the Binance currency exchange platform.
“Until his escape, Nadeem Anjarwalla, who holds British and Kenyan nationalities and served as Binance’s Africa regional manager, was being tried by Nigerian courts. The suspect escaped while under a 14-day remand order by a court in Nigeria. He was scheduled to appear before the court again on 4 April 2024” the statement added.
He urged Nigerians and the international community to help with information that could lead to the arrest of the suspect.
Mijinyawa said, “We urge the Nigerian public and the international community to provide whatever information they have that can assist law enforcement agencies to apprehend the suspect.”
Financial Times had on February 28 reported that two executives of the company were arrested and detained after they flew into the country as a result of a ban on their website.
On March 12, 2024, the FT reported that the EFCC asked Binance to share data on its 100 top users in Nigeria as well as all transaction history for the past six months.
According to the report, the request is at the centre of negotiations between Binance and Nigeria.
FG files tax evasion charges against Binance
In another development, the Federal Government has formally instituted a legal action against Binance, a prominent cryptocurrency exchange platform.
The Federal Inland Revenue Service announced this on Monday stating that it formally lodged the case at the Federal High Court in Abuja.
Details of the case designated as suit number FHC/ABJ/CR/115/2024; show that Binance was charged with a four-count tax evasion accusation.
Accompanying the crypto company 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.
Meanwhile, the charges leveled against Binance include allegations of non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.
The Federal Government also accused Binance of neglecting to register with FIRS for tax purposes and contravening existing tax regulations within the country.
One of the counts in the lawsuit pertains to Binance’s purported failure to collect and remit various categories of taxes to the federation, as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.
This section explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.
The charges outline 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 and also collect and remit Value Added Tax. However, Binance did not adhere to these requirements, thus violating Nigerian laws and potentially facing investigation and legal action for this infraction.”
The Federal Government says it remains steadfast in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.
By law, FIRS is empowered to assess, collect, and account for revenue accruing to the Federation and administer relevant tax laws.
