365Crypto
Nigeria bares no love for binance, after previously keeping a binance top executive in detention for 8 months, now it is hitting the crypto exchange with a huge penalty.
Massive Tax Demand
Nigeria’s tax authority, the Federal Inland Revenue Service (FIRS), has accused Binance of tax evasion, demanding over $81 billion in unpaid taxes and penalties. This includes $79.5 billion in economic damages and nearly $2 billion in outstanding income tax for 2022 and 2023.
Allegations Against Binance
FIRS claims Binance failed to disclose its business activities in Nigeria while profiting from the country’s large user base. Authorities say the exchange violated income tax laws and the Significant Economic Presence (SEP) Order,* which applies to foreign companies earning at least $30,000 annually from Nigerian customers.
Harshest Crypto Penalty Yet
This fine dwarfs the $4.3 billion Binance paid to U.S. regulators last year, making it the largest financial penalty ever sought from a crypto firm by a government.
Legal Battle and Controversy
The lawsuit is part of Nigeria’s crackdown on Binance, following previous charges against executive Tigran Gambaryan. He later accused Nigerian officials of corruption, claims the government has denied.
*Significant Economic Presence (SEP) Order: A regulation requiring foreign businesses to pay taxes if they earn above a set threshold from Nigerian customers.
