The probe focuses on Amazon’s European operations, specifically its Luxembourg-based unit, and its activities in Italy between 2019 and 2021.

Sources familiar with the matter revealed that Milan prosecutors and tax police are scrutinising Amazon’s role in facilitating online sales that allegedly allowed non-EU sellers, mainly from China, to evade Italian value-added tax (VAT).

Under Italian law, online marketplaces bear responsibility for ensuring that non-EU sellers using their platforms comply with VAT regulations.

Investigators believe that Amazon’s algorithm enabled the sale of goods from these foreign vendors without disclosing their identities, making it easier to avoid tax obligations.

Should the company be found liable, its financial penalty could increase significantly, reaching up to 3 billion euros when fines and interest are included.

The inquiry stems from routine tax inspections carried out in northern Italy, which led authorities to suspect large-scale tax fraud. The case, which initially surfaced last year, has now gained greater clarity with the latest revelations.

Amazon has not issued a statement regarding the ongoing probe and previously declined to comment when the investigation was first reported.

In a separate case, Italian tax police seized approximately 121 million euros in July 2024 from an Italian unit of Amazon. That investigation is focused on alleged tax fraud and illegal labour practices and remains ongoing.

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The company, founded in 2019, is now being investigated by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC). 

Per TechCabal, the investigations have led to the departure of several clients in 2024, including Moniepoint, Paystack, and Kobo360.

The allegations against Bento include forging tax receipts, delaying pension contributions, and other financial discrepancies. Sources familiar with the matter revealed that former clients are particularly concerned about Bento’s management of their tax and pension remittances. 

Fuelmetrics, a digital inventory management company, has accused Bento of owing ₦50 million ($108,000) in unpaid taxes and pension contributions between 2023 and 2024. “LIRS made us understand that there is an ongoing investigation on Bento and that we are not the only company affected in this scam, dating from 2023 till date,” Fuelmetrics said in an internal memo.

In response to the allegations, Bento’s CEO, Ebun Okubanjo, admitted that the company had received complaints regarding unpaid taxes. He assured that the company is addressing the issue and plans to settle outstanding obligations. 

However, Okubanjo downplayed the extent of the problem, claiming it affected “a very small percentage of Bento users, who happen to be very vocal in the tech ecosystem.” 

Even with this, sources have shown doubts about the company’s ability to manage client funds effectively, pointing to delays in remitting payments, some lasting up to ten months.

An unnamed former employee of Bento Africa alleged that Okubanjo deliberately delayed pension and tax payments despite the availability of client funds. According to the ex-employee, internal documents show that the company’s processes led to payments being delayed for long periods. 

Okubanjo, however, attributed these delays to the manual nature of Bento’s payment system and insisted that payments are made promptly once discrepancies are identified.

Despite these assurances, Bento’s internal processes have been questioned by industry experts. An HR-SaaS expert remarked, “It is uncommon to hear of payment glitches that last a calendar year,” adding that such delays suggest deeper systemic issues. Bento’s past controversies also increase doubts. 

In 2023, Okubanjo was criticised for allegedly creating a toxic work environment, leading him to step aside from people-related decisions temporarily.

Bento Africa has tried to address some of these challenges by lobbying for a direct API integration with Nigeria’s tax and pension systems, which they claim would simplify payment reconciliation. However, Okubanjo admitted that these efforts had not yet succeeded, leaving many clients frustrated.

The company’s difficulties have been compounded by an inability to provide clients with the detailed records required for reconciliation. For example, when Kobo360 spoke about missing pension payment receipts, Bento reportedly obstructed an EFCC investigation by refusing to provide the necessary records. 

The investigation revealed a shortfall of over ₦20 million in pension funds during the five years the company worked with Bento.

Bento’s CEO, however, has remained defiant. He claimed that only a few clients request regular short-term records for reconciliation and that such requests are difficult and expensive to fulfil due to the manual processes involved. 

Okubanjo also claimed that Bento’s transition towards serving small and medium enterprises (SMEs) was a deliberate move to reduce reliance on venture-backed startups, which are more vulnerable to funding downturns.

Nonetheless, with the ongoing investigations and the loss of key clients, Bento claims that it remains profitable, processing between ₦4-5 billion ($2.6 million) in salaries monthly. However, insiders remain wary of the company’s future, given the issues about its ability to effectively manage tax and pension obligations.

The post Bento Africa Under LIRS, EFCC Investigation Over Tax Evasion, Pension Mismanagement as Moniepoint, Paystack, and Kobo360 Depart appeared first on Tech | Business | Economy.

For instance, in 2021, the Central Bank of Nigeria (CBN), directed all banks to shutdown all customer accounts involved in cryptocurrency transactions. The financial regulator, however, lifted the ban in December 2023.

Recently, the Securities and Exchange Commission (SEC) increased the restrictions on May 6, 2024, by announcing the delisting of the naira from all peer-to-peer (P2P) platforms.

Dr. Emomotimi Agama, the Director-General of the Commission, further hinted that the government was drafting a new set of regulations to govern the crypto sector, following the International Monetary Fund (IMF’s) advice on regulating the industry.

Thus, cryptocurrency had been enraptured in a back and front, pro/ con debate.

However, here are countries in Africa that have placed an outright ban on cryptocurrency transactions:

1. Tunisia

In 2018, the Tunisian central bank criminalised crypto use after issuing a statement warning against using any digital asset not authorised by the state.

2. Sierra Leone

Sierra Leone’s apex bank banned two crypto companies in 2019. The bank also denied issuing licenses to businesses or financial institutions to take deposits for crypto investing or trading.

3. Republic of Congo

According to the International Monetary Fund (IMF), the Congolese government has outright banned crypto. A 2018 study by Ecobank also revealed that the Congolese Government and the country’s Central Bank have yet to articulate a public stance regarding the use of cryptocurrency and its legality.

4. Ghana

The Ghanaian government has also placed an outright ban on crypto transactions. While assessing the use of blockchain and how the technology fits into the nation’s payments system, the government, in 2022, reiterated its 2018 ban on the use of crypto in all financial transactions

5. Algeria

The Algerian parliament, in 2018, passed the Financial Law, which placed an embargo on the purchase, sale, use, and possession of crypto.

6. Lesotho

The country’s central bank, in 2018, issued a statement prohibiting the promotion and investments in cryptocurrency.

The bank described crypto as unregulated and unlicensed.

7. Morocco

Morocco’s Ministry of Economy banned all forms of crypto transactions in 2017 for violating exchange regulations. The country’s central bank, however, announced in 2023 that a new crypto trading regulation was being drafted.

8. Tanzania

Although Tanzania does not have a written regulatory framework for crypto transactions, its central bank issued a statement cautioning the public against trading and using virtual currencies. The bank noted that the only accepted legal tender is the Tanzanian Shilling.

9. Cameroon

At the moment, the only central bank for the Central African Economic and Monetary Community (CEMAC)—the Bank of Central African States (BEAC), to which Cameroon is affiliated—has not enacted any regulation regarding cryptocurrency trading.

The government is currently reviewing new regulatory mechanisms for the industry.

10. Egypt

By religious decree, cryptocurrency trading is prohibited under the Islamic Law. The country’s primary Islamic legislator, Dar al-Iftai, issued a religious decree classifying Bitcoin transactions as haram in 2018.

The Central Bank of Egypt followed up in 2019 with a statement saying it would develop a law banning the creation, trading, or promotion of cryptocurrency without a license.

Summary: 10 African Countries That Banned Cryptocurrency

1. Tunisia. 
2. Sierra Leone
3. Republic of Congo
4. Ghana
5. Algeria
6. Lesotho
7. Morocco
8. Tanzania
9. Cameroon
10. Egypt. 

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