The Federal Inland Revenue Service (FIRS) of Nigeria has requested the Federal High Court in Abuja to dismiss Binance’s application to vacate an ex-parte order permitting the service of court documents via email. This development is part of a broader legal dispute in which the FIRS is seeking $79.5 billion in damages and $2 billion in back taxes from Binance.
The FIRS contends that Binance, which lacks a physical office in Nigeria, has a significant economic presence in the country. The agency argues that Binance’s operations have contributed to Nigeria’s economic instability, particularly the depreciation of the naira. Binance’s legal team, however, asserts that the FIRS did not follow proper legal procedures in serving the summons abroad .
The case has been adjourned to May 12, 2025, to allow the court to consider the FIRS’s request to serve court documents by email and to address Binance’s objections.
Key Details of the Case:
1. FIRS’s Allegations:
- FIRS accuses Binance of tax evasion, including non-payment of Value Added Tax (VAT), Company Income Tax, and failure to file tax returns.
- The agency claims Binance’s operations in Nigeria generated an estimated $79.5 billion in untaxed revenue.
2. Ex-Parte Order:
- FIRS secured an ex-parte order (a temporary court order granted without Binance’s initial representation) to freeze Binance’s Nigerian operations pending the tax investigation.
- Binance later filed a motion to vacate (set aside) the order, arguing it was obtained without fair hearing.
3. FIRS’s Opposition:
- FIRS is urging the court to dismiss Binance’s application, insisting that the exchange must first comply with Nigerian tax laws before challenging the order.
- The agency claims Binance has been operating illegally in Nigeria without proper registration or tax remittance.
4. Broader Regulatory Crackdown:
- This case is part of a wider Nigerian government crackdown on crypto exchanges, including detention of Binance executives earlier in 2024 over alleged currency manipulation affecting the Naira.
Next Steps:
- The court will decide whether to uphold or dismiss Binance’s request to vacate the ex-parte order.
- If the order stands, Binance may face further asset freezes or operational restrictions in Nigeria.
Implications:
- A ruling in FIRS’s favor could set a precedent for stricter crypto taxation in Nigeria.
- Binance’s legal troubles in Nigeria may influence its global regulatory challenges.
Post a Comment
Leave a Reply