Nigeria Authority Files Charges Against Binance for Tax Evasion

On Monday, March 25, the federal government filed a charge against Binance for engaging in tax cheats. According to local news outlet Punch, the Nigerian authority claimed that Binance had been involved in tax evasion.

In its submission, the Nigerian Federal Inland Revenue Service (FIRS) claimed that Binance engaged in four tax cheats, including non remittance of value-added tax, non payment of company income tax, and failure to remit annual tax returns.

Report Shows Binance Violated Nigerian Tax Laws

Also, the tax regulators alleged that Binance allowed the investors to bypass the existing tax law. The FIRS confirmed that Binance operations in Nigeria were illegal since the controversial crypto exchange failed to register with the tax regulators.

The FIRS restated that operating as an unregistered exchange allowed Binance to evade its tax obligations. The regulators argued that the top-level management supported Binance’s noncompliance with Nigerian tax regulations.

A few days ago, the Nigerian government took corrective measures to restore the local currency’s stability. Earlier, the financial regulators expressed concerns about the devaluation of naira over the dollar.

The regulators noted that the demand for dollars outpaced the naira. This sharp decline in naira value obliged the regulators to take decisive action against foreign crypto exchanges in the region. In mid-March, the regulators invited Binance officials to deliberate on matters concerning its operation in Nigeria.

Upon arrival in Abuja, the law enforcer arrested two Binance officials, Tigran Gambaryan and Nadeem Anjarwalla. The arrest of the two aimed at allowing the local authority to proceed with the investigation of Binance operations.

Regulators Take Action Against Binance Noncompliance

Besides the ongoing investigation, the Nigerian court ordered Binance to suspend operations in West Africa. The regulators claimed that Binance facilitated the laundering of illicit funds and was ordered to provide customers with details.

The court instructed Binance to share a comprehensive report with the financial regulators disclosing the names, transaction history, and personal details of Nigerian investors trading on the platform. In response to the government request, the Binance team vowed to push for the release of the two officials.

Also, the embattled crypto exchange agreed to collaborate with the Nigerian authorities in ongoing investigations.

Upon contacting the Binance team to enquire more about the investigation, a representative from the controversial crypto exchange argued that it was inappropriate to comment on allegations based on the substance of the claim.

Binance Official Escapes Custody

On Friday, Nigerian law enforcers claimed that Anjarwalla had escaped custody. According to the Economic Financial Crimes Commission (EFCC), Mr Anjawalla escaped when he was being escorted by the guards to the mosque for the morning prayers, which was his normal routine.

The law enforcers suspect that Anjarwalla boarded a Middle East airline. It remains unclear on how Anjarwalla managed to travel without his passport, which was confiscated by the Nigerian authority.

The EFCC reported that Anjarwalla holds a Kenyan passport but resides in Britain. In a subsequent report, the Nigerian immigration officers claimed that Anjarwalla used his Kenya passport to flee from Nigeria.

Community Reacts on Escape of Binance Official From Custody

In response to the matter, the Binance spokesperson confirmed that Nadeem was not held in custody in Nigeria. The representative hopes his colleague Nadeem remains safe as the Binance team continues to push for his release.

The spokesperson vowed to work closely with the Nigerian authority to address the matter. Meanwhile, the Nigerian authorities are still investigating how Anjarwalla obtained his travel documents.

In the ongoing investigations, the law enforcers vowed to work around the clock to identify the destination and bring Anjarwalla back into custody. News concerning the escape of Anjarwalla sparked the tide of criticism on social media.

A statement from a person privy to the matters argued that the detention of Anjarwalla and Nadeem in a guest house facilitated an easy escape for him. He confessed that the guest house was well-equipped with telephone access and other services. This demonstrated that the access to some essential services at the guesthouse allowed Anjarwalla to plan for the escape.

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