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Facebook Co-Founder Eduardo Saverin Renounces US Citizenship Ahead Of Flotation

The Huffington Post UK  |  By Posted: 11/05/2012 17:58 Updated: 11/05/2012 18:05

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Saverin owns 4 per cent of Facebook

Eduardo Saverin, one of the four multi-billionaire founders of Facebook, has renounced his US citizenship in a move that could save him millions of dollars of tax ahead of the planned flotation of the social network, it has been reported.

An upcoming Initial Public Offering (IPO) is thought to give Facebook a value of $96 billion, of which Saverin owns 4%.

Tom Goodman, a spokesman for Saverin, told Bloomberg that: “Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time."

Brazilian-born Saverin, 30, became a US citizen in 1998 but currently lives in Singapore which doesn't have a capital gains tax. Reuven S. Avi-Yonah, a tax expert at the University of Michigan, told Bloomberg that making such a move was a "very smart idea".

Saverin would still face an exit tax paid by those who give up their US citizenship though this is certain to be far less than what he would incur by not doing so.

Saverin has previously been involved in legal proceedings with Facebook CEO Mark Zuckerburg, suing him in a dispute over ownership. The case was settled for an undisclosed amount.

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Eduardo Saverin, one of the four multi-billionaire founders of Facebook, has renounced his US citizenship in a move that could save him millions of dollars of tax ahead of the planned flotation of the...
Eduardo Saverin, one of the four multi-billionaire founders of Facebook, has renounced his US citizenship in a move that could save him millions of dollars of tax ahead of the planned flotation of the...
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MyTurnNC
40 Fans
02:07 AM on 05/16/2012
What would happen to Saverin and other Facebook profiteers if American Facebook users became so angry over his renunciation of American citizenship to avoid taxes that they cancelled their Facebook accounts? Maybe Facebook's value would drop.
How many have already left Facebook because of this?
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HUFFPOST SUPER USER
beenzrgud
Can't say what I'd like to here.
202 Fans
08:13 AM on 05/13/2012
A strange idea to apply an "exit tax" to those wishing to give up their citizenship of the US. It would be interesting to know how much this tax is and how many people who would choose to give up their citizenship but decide they cannot afford to do so because of this tax.
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HUFFPOST SUPER USER
Galician
Keep calm and carry on
329 Fans
 
10:15 PM on 05/12/2012
HA!!
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the grange gorman
Rachel Corrie is the greatest person since Lennon
445 Fans
08:47 PM on 05/12/2012
Well first of all facebook isnt worth $96B as people are leaving in droves due to privacy concerns.

Secondly , how much money does one person need ? Greed on this scale is pathological , why not just pay the taxes and enjoy the rest ?
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xpatnhappy
0 Fans
11:45 AM on 05/12/2012
The US is the only government with "citizenship based" taxes other than Eritrea..but the US doesn't approve of Eritrea taxation: http://isaacbrocksociety.com/2012/01/30/only-the-u-s-may-tax-its-citizens-living-abroad-u-s-condemms-use-of-disapora-tax-for-other-countries/

Please keep in mind CORPORATIONS don't play by the same rules...money earned outside the US is exempt.

Imagine you were born in Brazil.. but live, work, pay taxes in the US. Regardless, Brazil demands a tax return/pay tax every year.

Due to changing rules and forms, a US based tax attorney specialized in Brazilian law is required ($$$). You must report all bank accounts/assets held in the US. Failure to comply risks your life savings.

Brazilian politicians need $$$$, so demand US banks report the accounts of Brazilians living abroad. The US banks are upset because a) US law forbids this, b) expensive and c) US banks aren't Brazilian tax collectors. US banks kick out Brazilians instead of reporting.

Your future is at risk due to citizenship in a country you no longer live in.

The only way out is to renounce your Brazilian citizenship.

What would you do?

Most of us renouncing aren't extremely rich... but Saverin paid his taxes while living in the US (plus school, housing, etc.). He financed Facebook with private, not public $$$. He lives in Singapore (2 years) and wants to avoid double taxation ... is this wrong?
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HUFFPOST SUPER USER
fco1922
193 Fans
10:29 AM on 05/12/2012
This is becoming a common practice, so common in fact that the US is making it procedurally very difficult to renounce your citizenship. The waiting list for the required interview is months long in London; in other cities, the US Embassy will not even accept request for appointments. The reason I was given by a US Consul is that they are worried about the sheer volume of applications.
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HUFFPOST SUPER USER
jessjesskk
Benevolent Zombie Power
267 Fans
 
09:11 AM on 05/12/2012
that's a demonstration that the world is open
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Matthew Harrold
Huzzah!
738 Fans
04:32 AM on 05/12/2012
Anything to avoid paying taxes, huh? Shame the rest of us don't get these kind of luxury.
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HUFFPOST SUPER USER
Mongoose king
264 Fans
11:17 PM on 05/11/2012
At least give him points for honesty, the heads of most multinationals have no particular loyalty to any one country.
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ThinkCreeps
Seriously, it's time.
2533 Fans
07:26 PM on 05/11/2012
Can corporations renounce their citizenship?
I guess there's no need, since they don't pay tax anyway.
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lemmyk73
When you see a Rainbow, it is God having gay sex.
815 Fans
06:57 PM on 05/11/2012
AWESOME!!!!! Smart man.

I am looking into the same path.

Until the government is rid of corporate slaves everyone should give up their citizenship.
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Sickofpoliticians2
245 Fans
06:25 PM on 05/11/2012
unfriend the US and keep your billions, sounds good to me.
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