JUSTICE Emeka Nwite of the Federal High Court in a recent ruling has cleared Binance executives Tigran Gambaryan and Nadeem Anjarwalla of tax evasion charges brought against them by the Federal Inland Revenue Service (FIRS).
The FIRS had initially accused Binance and the executives of tax evasion on March 22, 2024.
However, after Binance appointed a Nigerian representative named Ayodele Omotilewa, the FIRS amended the charges.
The fresh charge alleged that Binance and Gambaryan had not complied with tax laws by failing to collect and remit taxes as required.
During the court proceedings, Binance’s legal team disclosed the appointment of their Nigerian representative, leading the FIRS to drop the charges against Gambaryan and Nadeem.
The revised charges now accused Binance of not deducting Value Added Taxes (VAT) while providing services to Nigerians, along with other tax-related infractions.
There was a debate in court about whether the Binance representative should stand trial on the corporation’s behalf, with the defense arguing against such a requirement under Nigerian law.
Ultimately, Justice Emeka Nwite dismissed the previous charges against Gambaryan and Nadeem, proceeding with the case against Binance alone.
The case was adjourned to July 12th for plea, with instructions for both parties to submit written arguments regarding the representative’s participation in the trial.
This legal development is coming amidst increased regulatory scrutiny of cryptocurrency in Nigeria, with Binance facing separate legal actions and accusations related to foreign exchange rates and money laundering.
