Federal high court clears Binance executives of tax evasion charges in Nigeria

In a significant development at the Federal High Court in Abuja on Friday, the court discharged Binance executives, Tigran Gambaryan and Nadeem Anjarwalla of Binance Holdings Limited from tax evasion charges filed by the Federal Inland Revenue Service (FIRS).

The case, initiated by the FIRS on March 22, 2024, accused Binance and Gambaryan of evading taxes. The FIRS later amended its charges on May 17, 2024, alleging that Binance had neglected to collect and remit several taxes, including Value Added Tax (VAT) and Company Income Tax, as mandated by Section 40 of the FIRS Establishment Act 2007, as amended.

The court’s decision came after Binance appointed Ayodele Omotilewa as its Nigerian representative, a move that led the FIRS to amend the lawsuit, listing Binance as the sole defendant. This appointment was crucial in resolving the case, allowing the court to discharge Gambaryan and Anjarwalla.

The confirmation of Omotilewa’s role was pivotal in aligning Binance executives legal representation with Nigerian regulations, thereby prompting the FIRS to withdraw its charges against the individuals and focus solely on Binance.

This ruling underscores the importance of compliance with local tax regulations and the role of appointed representatives in facilitating legal proceedings.