Binance, a well-known cryptocurrency exchange platform, is facing criminal charges from the Federal Inland Revenue Service (FIRS) in Nigeria for allegedly breaching tax laws.
The FIRS has lodged a legal case against Binance at the Federal High Court in Abuja, accusing the platform of violating four specific tax statutes.
Here are the tax laws purportedly breached by Binance:
1. Failure to pay Value-Added Tax (VAT):
The federal government alleges that Binance did not register with FIRS for taxation purposes and violated existing tax rules in Nigeria.
2. Company Income Tax:
One aspect of the lawsuit involves Binance’s alleged neglect to gather and submit various types of taxes to the federal government, as mandated by Section 40 of the FIRS Establishment Act 2007, as amended.
3. Neglecting to submit tax returns:
Another accusation is that Binance disregarded Section 40 of the Act, which addresses the failure to deduct and remit taxes, outlining penalties and possible imprisonment for non-compliant entities.
4. Alleged involvement in assisting customers in evading taxes through its platform.
The FIRS reiterated its dedication to enforcing tax laws and combatting financial wrongdoing in the cryptocurrency industry.
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