The Federal High Court in Abuja has admitted documents submitted by the Federal Inland Revenue Service (FIRS), reportedly detailing the volume of Binance’s financial transactions in Nigeria and confirming an ongoing tax probe into the cryptocurrency platform.
Presiding over the matter, Justice Emeka Nwite accepted the documents into evidence on Friday, following an application by FIRS counsel, Moses Idehu. This marks a significant development in the case, which accuses Binance of failing to collect and remit Value Added Tax (VAT) and Company Income Tax (CIT), in line with Section 40 of the FIRS Establishment Act 2007 (as amended).
The FIRS had amended its lawsuit on May 17, 2024, alleging that Binance offered services—including crypto trading, remittances, and asset transfers—to Nigerians without deducting the required VAT.
As part of the proceedings, Muftau Abdukarim, Assistant Director at the FIRS Government Business Task Office, testified that he directed an investigation into Binance following a memo received on March 12, 2024. His team used TaxPro Max, FIRS’s in-house software, to examine Binance Holdings Ltd’s compliance status. The resulting memos, detailing the investigation and requesting bank transaction records, were presented in court and accepted as evidence without objection from Binance’s counsel, Chukwuka Ikwuazom (SAN).
The case was adjourned to May 20, 2025.
Previously, the court discharged Tigran Gambaryan, an American national, and the now-fugitive Nadeem Anjarwalla from the FIRS case after Binance named Ayodele Omotilewa as its Nigerian representative. Omotilewa denied the tax evasion allegations on behalf of the company.
The legal pressure on Binance follows broader scrutiny from Nigerian authorities. Earlier this year, officials accused Binance of contributing to the volatility in the foreign exchange market, with Information Minister Idris Mohammed claiming the platform had a turnover of over $20 billion in Nigeria in 2023.
Binance also faces separate legal actions from the EFCC and FIRS, including a high-profile tax evasion suit seeking $79.5 billion in damages, ₦231 million in penalties, and over $2 billion in back taxes for 2022 and 2023.
For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Inner Konsult Ltd at www.innerkonsult.com at Lagos, Ogun state Nigeria offices. You can also reach us via WhatsApp at +2348038460036.
