Binance Executive Escapes From Custody As FG Charges Company With Tax Evasion And Others

One of the two Binance executives detained in Nigeria for alleged tax evasion and other offences, Nadeem Anjarwalla, has reportedly escaped from custody.

In February, the Federal Government detained the two senior executives of Binance.

The arrest came amidst efforts by the government to rein in speculation on the naira by cracking down on cryptocurrency exchanges.

The charges against Binance include non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

Anjarwalla, on Friday, reportedly escaped from the Abuja guest house where he and his colleague were being held, Premium Times reports.

He was said to have escaped after some guards on duty escorted him to a nearby mosque for prayers.

The British national, who also holds Kenyan citizenship, is suspected to have departed Abuja via a Middle East airline.

How Anjarwalla boarded an international flight despite his British passport, which he used to enter Nigeria, being held by Nigerian authorities remains unclear.

Premium Times reports that authorities are also working to unravel his intended destination to get him back into custody.

An Immigration official said the Binance executive fled Nigeria on a Kenyan passport.

The official disclosed that the authorities are working on unravelling how he obtained the passport, given the fact that he had no other travel document (apart from the British passport) on him when he was arrested.

According to another insider, the two officials were detained in a “pleasant guest house” and granted numerous privileges, such as access to telephones. Anjarwalla is suspected to have taken advantage of this opportunity to plan his escape.

The Head of Strategic Communication at the Office of the National Security Adviser, Zakari Mijinyawa, could not confirm the incident when contacted on Sunday night.

Mijinyawa promised to enquire and revert.

However, he has yet to do so as of the time of filing this report.

Meanwhile, the Federal Inland Revenue Service (FIRS) has filed criminal charges against Binance, a leading cryptocurrency exchange platform.

The lawsuit, filed at the Federal High Court in Abuja under case number FHC/ABJ/CR/115/2024, accuses Binance of four separate tax offenses.

They include non-payment of Value Added Tax (VAT); failure to file tax returns; non-payment of Company Income Tax (CIT) evasion and “aiding customer tax evasion”.

The FIRS alleged that Binance’s platform facilitated customer tax evasion.

In a statement on Monday in Abuja, the FIRS noted that filing the suit goes beyond the issue of registration, asserting that Binance failed to adhere to existing Nigerian tax regulations.

According to the FIRS: “The Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.

“One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.

“Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities”.

Specifically, the FIRS accused Binance of neglecting to register for tax purposes.

The lawsuit claimed that Binance did not register with the FIRS as required by law while another charge alleges that Binance’s operations violated established tax regulations in Nigeria.

The FIRS provided details to support its claims.

The lawsuit named Tigran Gambaryan and Nadeem Anjarwalla, senior Binance executives in the custody of the Economic and Financial Crimes Commission (EFCC) as the second and third defendants.

The FIRS emphasised its commitment to enforcing tax regulations and tackling financial misconduct within the cryptocurrency sector.

The agency is empowered by law to assess, collect, and account for federal revenue, including administering relevant tax laws.

The lawsuit comes after Binance pleaded guilty to violating anti-money laundering laws in the United States in late 2023.

The company settled the charges through a plea bargain that resulted in a $4.3 billion penalty.

This lawsuit represents a major development in regulating cryptocurrency activities in Nigeria.

The outcome of the case will be closely watched by industry players and could set a precedence for future regulation of the cryptocurrency sector in Nigeria.