tl;dr
Nigeria's Federal Inland Revenue Service (FIRS) has filed a legal action against Binance Holdings Limited, demanding over $81 billion in unpaid taxes and penalties. The claim includes $79.5 billion in economic damages, an additional $153,223 tied to Binance's operations, and nearly $2 billion in out...
Nigeria's Federal Inland Revenue Service (FIRS) has filed a legal action against Binance Holdings Limited, demanding over $81 billion in unpaid taxes and penalties. The claim includes $79.5 billion in economic damages, an additional $153,223 tied to Binance's operations, and nearly $2 billion in outstanding income tax for 2022 and 2023.
FIRS argues that Binance failed to disclose its business activities in Nigeria and violated tax laws. If enforced, this demand would mark the most significant financial penalty ever imposed on a crypto firm by a national government. The lawsuit is part of Nigeria's broader crackdown on Binance and follows the withdrawal of previous charges against a Binance executive.
Nigeria’s Federal Inland Revenue Service (FIRS) has taken legal action against Binance Holdings Limited, demanding over $81 billion in unpaid taxes and penalties. This claim includes $79.5 billion in economic damages and an additional N231 million ($153,223) tied to Binance’s operations. The tax authority also seeks nearly $2 billion in outstanding income tax for 2022 and 2023. Binance has yet to respond to CryptoSlate’s request for comment.
If enforced, it would mark the most significant financial penalty ever imposed on a crypto firm by a national government.
NIGERIA’S CASE AGAINST BINANCE FIRS argues that Binance failed to disclose its business activities in Nigeria while benefiting from its vast user base. The agency claims the exchange violated the Companies Income Tax (CIT) Act and the Significant Economic Presence (SEP) Order.
The SEP Order applies to foreign firms earning at least N25 million ($30,000) annually from Nigerian customers. According to FIRS, Binance generated $35.4 million in net revenue from a trade volume of $21.6 billion in 2023.
The tax claim also includes a 10% penalty for tax evasion and a 26.75% interest charge from Jan. 1, 2023, to Jan. 1, 2024. The authorities alleged that Binance operated unauthorized financial services and failed to comply with anti-money laundering regulations, causing economic harm to Nigeria. This lawsuit is part of Nigeria’s broader crackdown on Binance.
It follows the withdrawal of previous charges against Binance executive Tigran Gambaryan, who has since accused Nigerian officials of corruption. Gambaryan claims that authorities deliberately targeted Binance to divert attention from internal economic challenges. However, the Nigerian government has described his accusations as false and baseless.