The tax evasion case involving Binance Holdings Limited and its executives has encountered a significant delay at the Federal High Court in Abuja. This setback occurred after a key staff member, Tigran Gambaryan, failed to appear in court for his scheduled arraignment.
Tigran Gambaryan, a prominent executive at Binance, was expected to present himself before the court after being formally charged by the Federal Inland Revenue Service (FIRS). The charges against Gambaryan, along with fellow executive Nadeem Anjarwalla and Binance itself, center on allegations of tax evasion. Notably, Anjarwalla fled the country on March 22, 2024, further complicating the legal proceedings.
The FIRS has brought a four-count charge against Binance. The allegations assert that the company neglected to register with the FIRS to fulfill its tax obligations. Additionally, the FIRS claims that Binance failed to issue necessary invoices to subscribers using its trading platform, which would have facilitated the proper calculation and payment of value-added taxes (VAT).
At the previous court session, the FIRS’s counsel, Moses Ideh, successfully served Gambaryan with the charges with the court’s approval, and the case was adjourned to allow for his arraignment. However, during the latest proceedings, Gambaryan was conspicuously absent. His counsel, Chukwuka Ikwuazo (SAN), explained to the court that the Nigerian Correctional Service had not transported Gambaryan to the hearing. Ikwuazo requested a stand down to ascertain the reasons for this oversight.
The absence of Gambaryan prompted a strong reaction from the FIRS’s legal team. Moses Ideh expressed frustration over the defendant’s non-appearance and vehemently opposed the request for a stand down. He accused the defense counsel of being aware that Gambaryan would not attend and of failing to take adequate measures to ensure his presence in court.
In response to these accusations, Ikwuazo defended his position, insisting that Gambaryan’s absence was entirely due to the Correctional Service’s failure to produce him. He assured the court that he had no prior knowledge of this issue and requested an adjournment, promising to ensure Gambaryan’s presence at the next court date.
After considering the arguments from both sides, Justice Emeka Nwite decided to adjourn the case until June 14 for Gambaryan’s arraignment. This adjournment grants the defense additional time to resolve the logistical issues and prepare for the next phase of the proceedings.
This case marks a significant legal challenge for Binance, one of the world’s largest cryptocurrency exchanges. The outcome could have broader implications for the regulation and taxation of digital financial services in Nigeria. The FIRS’s pursuit of this case underscores the Nigerian government’s increasing focus on ensuring compliance with tax laws in the rapidly evolving digital economy.
As the court date approaches, the legal teams and involved parties will undoubtedly work intensively to address the unresolved issues. The adjournment provides a brief respite but also heightens the anticipation surrounding the eventual arraignment and the subsequent legal battle that will follow.
