The Federal Government of Nigeria has initiated legal proceedings against Binance, a prominent cryptocurrency exchange platform, over alleged tax evasion.

The charges were filed at the Federal High Court in Abuja by the Federal Inland Revenue Service (FIRS), marking a significant escalation in the government’s efforts to ensure compliance with tax regulations within the burgeoning cryptocurrency industry.

The suit, numbered FHC/ABJ/CR/115/2024, implicates Binance with four tax evasion accusations, alleging non-payment of Value-Added Tax (VAT), Company Income Tax (CIT), failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

Joined with the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance, who supposedly are currently under the custody of the Economic and Financial Crimes Commission (EFCC).

According to FIRS, Binance’s failure to comply with tax obligations includes non-registration with FIRS for tax purposes and contravention of existing tax regulations within the country. One of the counts in the lawsuit pertains to Binance’s alleged 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, which prescribes penalties and potential imprisonment for defaulting entities.

“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria,” the FIRS Act says.

According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).

Adekanmbi, a legal practitioner said that Binance failed to follow this rule. “So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” he said.

This move by FIRS, empowered by law to assess, collect, and account for revenue accruing to the Federation and administer relevant tax laws, is believed to be sending a deterrent message to players in the digital asset sector with the tax evasion charges against Binance.

The allegations of tax evasion against Binance have sparked discussions and raised concerns about the Nigerian government’s approach to the crypto giant. Previously, the government had accused Binance of engaging in “illegal transactions” totaling $26 billion and proposed a hefty fine of $10 billion. However, with the focus now shifted to tax evasion charges, some are questioning whether the government has substantive evidence against Binance or if these allegations are merely to get the exchange to pay heavy fines.

Binance largely ceased operations in Nigeria in early March and subsequently, three of its executives were arrested by Nigerian authorities seeking data on users and transactions on the crypto exchange platform.

Meanwhile, in a surprising turn of events, one of the detained Binance executives, Nadeem Anjarwalla, reportedly escaped from custody. Anjarwalla, 38, escaped on Friday, 22 March, from the Abuja guest house where he and his colleague were detained after guards on duty led him to a nearby mosque for prayers in the spirit of the ongoing Ramadan fast.

The Briton, who also has Kenyan citizenship, is believed to have flown out of Abuja using a Middle Eastern airline, raising questions about security protocols and oversight.

Binance’s challenges in Nigeria follow closely after the crypto exchange platform pleaded guilty and consented to pay $4.3 billion to resolve criminal money laundering allegations brought forth by the US Department of Justice. Binance’s founder and CEO, Changpeng Zhao (CZ), pleaded guilty and agreed to step down, while his criminal trial was postponed to April 30 by a US court.

This development adds another layer to the scrutiny faced by Binance on an international scale.

An Igbo proverb is clear – “no man, no matter how wealthy, can prepare enough food for his kinsmen, but if those kinsmen make food for him, he will be unable to consume the whole food”. That proverb is not saying that Dangote cannot feed his village kinsmen in Kano for an evening. Rather, the proverb is drawing on the strength that comes from unity and the “wisdom of many”.

In the Igbo Nation, parents name their children “Igwebuike” [strength in many] because despite the success of any person, the real strength comes in teamwork. The elders conclude by saying that no matter how big an iroko tree is, it can never be called a forest because a forest requires having many “trees”.

That brings me to the news that the CEO of Boeing will be stepping down: “Boeing, a cornerstone of the aerospace industry, finds itself in the midst of a significant management overhaul as CEO Dave Calhoun announces his intention to step down…”

America and the flying public cooked for Dave when the airline executives (not Boeing investors) visited him. Those airline executives from United, Delta, Alaska Airlines, etc cannot be managed by dividends, stock buyback, and their calls were not “money” but service. With Boeing struggling on delivering service, Dave has more than enough food to eat, and he decided to give up.

LinkedIn Summary

Major changes are in store for Boeing. CEO Dave Calhoun will step down at the end of the year, while board chair Larry Kellner will step aside at Boeing’s annual meeting in May, the company said Monday. Stan Deal, who heads up the aerospace giant’s Commercial Airplanes division, is out effective immediately. Boeing has faced intense scrutiny in recent months over its safety and manufacturing practices; last week, the company agreed to deploy members of the board — including Kellner — to meet with concerned airline CEOs, The Wall Street Journal reported, citing anonymous sources.

• In a memo to employees obtained by Business Insider, Calhoun urged “a total commitment to safety and quality at every level of our company” as “the eyes of the world are on us.”
• The Federal Aviation Administration may limit United Airlines’ new routes after a series of safety incidents, Bloomberg reported, citing anonymous sources.

Boeing CEO Dave Calhoun to Step Down Amid Management Shake-Up

Boeing, a cornerstone of the aerospace industry, finds itself in the midst of a significant management overhaul as CEO Dave Calhoun announces his intention to step down at the end of 2024.

This strategic move comes at a critical juncture for the embattled company, facing mounting pressure from both regulatory bodies and its customer base following a string of quality and manufacturing issues plaguing its aircraft.

Calhoun’s departure is just one piece of a broader restructuring effort within Boeing, with Larry Kellner, the chairman of the board, also resigning and opting not to seek reelection at the company’s upcoming annual meeting in May. Taking the reins as chair will be Steve Mollenkopf, a seasoned Boeing director since 2020, tasked with overseeing the selection process for a new CEO to lead the company forward.

In tandem with Calhoun’s exit, Stan Deal, the president and CEO of Boeing Commercial Airplanes, is making an immediate departure from the company. His role will be filled by Stephanie Pope, who recently ascended to the position of Boeing’s chief operating officer after successfully leading Boeing Global Services.

“As you all know, the Alaska Airlines Flight 1282 accident was a watershed moment for Boeing,” Calhoun wrote to employees on Monday. “We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company.

“The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years,” he wrote.

The decision for Calhoun to resign was characterized as entirely his own during an interview with CNBC on Monday. In his remarks, Calhoun underscored the urgent need for action and change within Boeing, acknowledging the challenges the company faces, particularly in terms of supply chain disruptions and manufacturing quality control.

“This is a moment for us,” Calhoun stated. “We have another mountain to climb. Let’s not avoid the call for action. Let’s not avoid the changes that we have to make in our factory. Let’s not avoid the need to slow down a bit and let the supply chain catch up.”

Calhoun’s tenure as CEO has been marked by numerous challenges, most notably stemming from the aftermath of two fatal crashes involving Boeing 737 Max aircraft, which ultimately led to the removal of his predecessor, Dennis Muilenburg. Despite assurances to address quality struggles, Boeing has encountered persistent production problems, resulting in delays in delivering new planes to its customers.

The Federal Aviation Administration (FAA) has responded to these challenges by ramping up oversight of Boeing, with Administrator Mike Whitaker indicating that the company will be prohibited from increasing 737 production until the FAA is satisfied with its quality control measures.

Airlines, including industry heavyweights such as United Airlines, Southwest Airlines, and American Airlines, have publicly expressed concerns over Boeing’s production delays and the need for stricter manufacturing quality controls. Ryanair CEO Michael O’Leary welcomed the management changes, praising Stan Deal’s salesmanship while emphasizing the necessity for new leadership to address operational challenges, particularly in Boeing’s Seattle operations.

Amidst these developments, Boeing’s stock experienced a modest uptick, rising more than 3% following the announcement of Calhoun’s impending departure. This uptick reflects investor optimism regarding potential changes within the company amidst its ongoing safety crisis.

Boeing shares have faced a significant decline this year, down 26% thus far, indicative of the turbulence being faced by the aerospace giant.

Apple’s compliance with new EU laws designed to rein in the market power of big tech companies is set to be investigated by regulators, the European Commission has announced.

The Commission said on Monday that non-compliance investigations have been opened against Apple, Google, and Meta, under the new Digital Markets Act (DMA).

The probe into Apple will look at whether the company allows developers to “steer” users away from its App Store, as well as its default web browser choice screen. Google’s rules on steering in Google Play and self-preferencing in Google searches are also being looked at, as is Meta’s “pay or consent model.”

The Commission has opened proceedings to assess whether the measures implemented by Alphabet and Apple in relation to their obligations pertaining to app stores are in breach of the DMA. Article 5(4) of the DMA requires gatekeepers to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.

The Commission is concerned that Alphabet’s and Apple’s measures may not be fully compliant as they impose various restrictions and limitations. These constrain, among other things, developers’ ability to freely communicate and promote offers and directly conclude contracts, including by imposing various charges.

The Commission has opened proceedings against Apple regarding their measures to comply with obligations to (i) enable end users to easily uninstall any software applications on iOS, (ii) easily change default settings on iOS, and (iii) prompt users with choice screens which must effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones.

The Commission is concerned that Apple’s measures, including the design of the web browser choice screen, may be preventing users from truly exercising their choice of services within the Apple ecosystem, in contravention of Article 6(3) of the DMA.

The Commission said it is also taking other investigatory steps to gather facts and information to clarify whether Apple’s new fee structure and other terms and conditions for alternative app stores and distribution of apps from the web (sideloading) may be defeating the purpose of its obligations under the DMA.

The Commission has also adopted five retention orders addressed to Alphabet, Amazon, Apple, Meta, and Microsoft, asking them to retain documents that might be used to assess their compliance with the DMA obligations. The Commission intends to conclude the proceedings opened today within 12 months.

In cases of infringement, the Commission can impose fines of up to 10% of the company’s total worldwide turnover. Such fines can go up to 20% in case of repeated infringement under the DMA. The Commission also has the power to adopt “additional remedies” such as “obliging a gatekeeper to sell a business or parts of it,” or banning the company from acquisitions of additional services related to the non-compliance.

Apple earlier this month implemented several major changes to the way the App Store and apps operate in the EU in order to comply with the DMA. These changes are included in iOS 17.4 but are generally limited to countries that are in the European Union.

A statement from the Commission reads partly:

“The Commission has opened proceedings to assess whether the measures implemented by Alphabet and Apple in relation to their obligations pertaining to app stores are in breach of the DMA. Article 5(4) of the DMA requires gatekeepers to allow app developers to “steer” consumers to offers outside the gatekeepers’ app stores, free of charge.

The Commission is concerned that Alphabet’s and Apple’s measures may not be fully compliant as they impose various restrictions and limitations. These constrain, among other things, developers’ ability to freely communicate and promote offers and directly conclude contracts, including by imposing various charges.

The Commission has opened proceedings against Apple regarding their measures to comply with obligations to (i) enable end users to easily uninstall any software applications on iOS, (ii) easily change default settings on iOS, and (iii) prompt users with choice screens which must effectively and easily allow them to select an alternative default service, such as a browser or search engine on their iPhones.

The Commission is concerned that Apple’s measures, including the design of the web browser choice screen, may be preventing users from truly exercising their choice of services within the Apple ecosystem, in contravention of Article 6(3) of the DMA.

Meta’s “pay or consent” model

Finally, the Commission has opened proceedings against Meta to investigate whether the recently introduced “pay or consent” model for users in the EU complies with Article 5(2) of the DMA which requires gatekeepers to obtain consent from users when they intend to combine or cross-use their personal data across different core platform services.

The Commission is concerned that the binary choice imposed by Meta’s “pay or consent” model may not provide a real alternative in case users do not consent, thereby not achieving the objective of preventing the accumulation of personal data by gatekeepers.”

When your spouse buys you a financial book as you have a habit of buying stocks, etc for her birthday, you can see the correlation.  Simply, continue to read so that during the next birthday, you can pick smartly.

What is a balanced spousal birthday gift? It means mixing the assets and balancing the family portfolio. Yes, sometimes, you go for the latest tech gizmos, etc, but never forget that stocks, equities, etc could be gifts.

Also, there is a psychological angle there: you are more likely to gift a high return, high risk investment than you can just buy and hold. For example, I have never bought bitcoin for myself, but I bought one for Ifeoma, and it has returned 4x in about 18 months.

I guess that may be the reason she got this book since I don’t really like Bitcoin (for buying it, you can pay me with it) but I was open to gifting her one! Hope the book will explain the connection between money and gifting. Left and right, I have something to read in the next few days!

When your spouse buys you a financial book as you have a habit of buying stocks, etc for her birthday, you can see the correlation.  Simply, continue to read so that during the next birthday, you can pick smartly.

What is a balanced spousal birthday gift? It means mixing the… pic.twitter.com/qJ5hjeuToC

— Ndubuisi Ekekwe (@ndekekwe) March 25, 2024