Detained Binance executive Nadeem Anjarwalla, escapes from custody
FG files tax evasion charges against the cryptocurrency exchange platform.
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.
Meanwhile, the Federal Government has taken legal action against Binance.
The charges, formally lodged at the Federal High Court in Abuja, were announced on Monday by the Federal Inland Revenue Service (FIRS).
Designated as suit number FHC/ABJ/CR/115/2024, the lawsuit implicates Binance with a four-count tax evasion accusation.
Accompanying the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently held in custody by the Economic and Financial Crimes Commission (EFCC).
The charges levelled against Binance include allegations of non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.
Furthermore, the Federal Government accuses Binance of neglecting 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 purported 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.
This section explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.
The charges outline specific instances where Binance allegedly violated tax laws, such as the failure to issue invoices for VAT purposes, thereby impeding the determination and payment of taxes by subscribers.
“Any company that conducts business exceeding N25 million annually is deemed, by the Finance Act, to be present in Nigeria,” the FIRS noted in a statement.
“According to this rule, Binance falls into that category. So, it is obligated to pay taxes like Company Income Tax (CIT) and also collect and remit Value Added Tax (VAT). However, Binance did not adhere to these requirements, thus violating Nigerian laws and potentially facing investigation and legal action for this infraction.”
The Federal Government says it remains steadfast in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.
By law, FIRS is empowered to assess, collect, and account for revenue accruing to the Federation and administer relevant tax laws.
Binance previously pleaded guilty to violating anti-money laundering laws in the United States in late 2023, reaching a plea bargain agreement that resulted in the company paying a hefty fine of $4.3 billion.
