Federal High Court discharges Binance executives in tax evasion case

By Innocent Raphael 

An Abuja Federal High Court on Friday discharged Tigran Gambaryan and Nadeem Anjarwalla of Binance Holdings Limited from charges of tax evasion. 

This decision follows amendments to the charges by the Federal Inland Revenue Service (FIRS).

The FIRS originally filed the case against Binance, Gambaryan, and Anjarwalla on March 22, 2024, accusing them of failing to collect and remit required taxes, including Value Added Tax (VAT) and Company Income Tax, in violation of Section 40 of the FIRS Establishment Act 2007, as amended.

The case took a turn on May 17, 2024, when the FIRS amended its lawsuit. The changes came after Binance appointed Ayodele Omotilewa as its Nigerian representative, aiming to ensure better compliance with local tax laws. 

This appointment was a significant move, signalling Binance’s intent to address regulatory concerns in Nigeria, one of Africa’s largest and fastest-growing markets for cryptocurrency.

With Omotilewa’s appointment, the FIRS revised its charges, focusing solely on Binance as the defendant and dropping individual charges against Gambaryan and Anjarwalla. Consequently, the court discharged the two executives.

Binance, a major global cryptocurrency exchange, has been under increasing scrutiny by regulators worldwide, including in Nigeria, where the government has been ramping up efforts to regulate the burgeoning digital currency sector. 

The FIRS’s legal actions are part of broader initiatives to enforce tax compliance and oversight in the digital economy.

The case highlights ongoing tensions between cryptocurrency companies and regulators, as governments strive to adapt tax laws to new financial technologies.

Binance’s cooperation and the appointment of a local representative indicate a strategic shift in the company’s approach to regulatory compliance in Africa.