Binance Holdings Ltd. has petitioned the Federal High Court in Abuja to revoke an ex-parte order granted to the Federal Inland Revenue Service (FIRS) for substituted service of court documents. This move comes as part of an ongoing legal dispute involving Binance's tax obligations in Nigeria.
Background of the Case
The FIRS had obtained the order on February 11, 2025, allowing it to serve Binance via email due to the company's lack of a physical presence in Nigeria. The FIRS is seeking to determine whether Binance is liable for annual corporate income tax in Nigeria based on its significant economic presence from 2022 to 2023.
Binance's Argument
Binance's lawyer, Chukwuka Ikwuazom, SAN, argued that the rules of the court for substituted service were not followed before the order was made. He filed a motion to this effect on Friday, which was served on the FIRS in the morning of the court hearing.
Court Proceedings
Justice Inyang Ekwo adjourned the matter until April 30 to allow the FIRS sufficient time to respond to Binance's application. The FIRS counsel, Chief Kanu Agabi, SAN, expressed interest in responding to the motion.
Context of the Dispute
This legal battle is part of a broader effort by the FIRS to ensure compliance with tax laws by foreign companies operating in Nigeria. Binance's case highlights the challenges faced by regulatory bodies in taxing digital businesses without a physical presence in the country.
