Due to alleged economic losses resulting from its operations in Nigeria, the Federal Government is seeking $81 billion as compensation from Binance Holdings Limited, a cryptocurrency company.
Despite having a significant economic presence in Nigeria, the Federal Government claimed Binance purposefully operated in secrecy.
The Federal Government alleges that the business contravened several financial and tax laws, including the Nigerian Regulatory Framework for Mobile Money Services, the Companies Income Tax Act, the Federal Inland Revenue Service (Establishment) Act, and the Significant Economic Presence (SEP) Order, which applies to foreign companies making at least N25 million in annual revenue from digital services in Nigeria.
According to Jimada Yusuf, a member of the special investigation team at the Office of the National Security Advisor (ONSA), Binance is said to have been operating in Nigeria without registration for more than six years.
Justice Maurice Ikpambese’s status as NJC’s Chief Judge is also available.
At a meeting with the Securities and Exchange Commission (SEC) in 2024, Yusuf claimed Binance’s Tigran Gambaryan and Nadeem Anjarwalla made the claim.
He further claimed that in a letter dated February 20, 2024, Binance acknowledged having 386, 256 active Nigerian users, a trading volume of $21.6 billion, and a net revenue of $35.4 million for the 2023 calendar year.
The FIRS argued that Binance is required to file income tax returns for 2022 and 2023 and is subject to corporate income tax regulations under the guidance of its lead counsel, Kanu Agabi (SAN).
Additionally, the organization is requesting a court order for Binance to pay $ 2,001,000 in unpaid income taxes for the following two years and impose a 10% annual penalty on unpaid taxes.
The FIRS also wants Binance to pay an annual interest rate of 26.75 percent, based on the CBN’s lending rate, from January 1, 2023, and January 1, 2024, respectively, until full payment is made.
Additionally, the FIRS requests that Binance be held responsible for economic losses amounting to $79.51 billion and N231 million.
At the latest court proceedings, Justice Inyang Ekwo, granted a motion for substituted service on Binance, allowing legal documents to be served through alternative means.
Source: Channels TV
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