Facebook co-founder drops U.S. citizenship

[Barefootsies]

Interesting. Considering this was being discussed by superbonzo a few weeks back.

Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.

Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin?s stake is about 4 percent, according to the website Who Owns Facebook. At the high end of the IPO valuation, that would be worth about $3.84 billion. His holdings aren?t listed in Facebook?s regulatory filings.

Saverin, 30, joins a growing number of people giving up U.S. citizenship, a move that can trim their tax liabilities in that country. The Brazilian-born resident of Singapore is one of several people who helped Mark Zuckerberg start Facebook in a Harvard University dorm and stand to reap billions of dollars after the world?s largest social network holds its IPO.

[Related: Facebook Eyes Higher Price Range: Sources]

?Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,? said Tom Goodman, a spokesman for Saverin, in an e-mailed statement.

Saverin?s name is on a list of people who chose to renounce citizenship as of April 30, published by the Internal Revenue Service. Saverin renounced his U.S. citizenship ?around September? of last year, according to his spokesman.

Singapore doesn?t have a capital gains tax. It does tax income earned in that nation, as well as ?certain foreign- sourced income,? according to a government website on tax policies there.

Exit Tax

Saverin won?t escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from their stock holdings, even if they don?t sell the shares, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan?s law school. For tax purposes, the IRS treats the stock as if it has been sold.

Renouncing your citizenship well in advance of an IPO is ?a very smart idea,? from a tax standpoint, said Avi-Yonah. ?Once it?s public you can?t fool around with the value.?

Saverin previously scuffled with Zuckerberg, his Harvard University classmate, over his ownership in Facebook. Saverin sued him and settled for an undisclosed amount.

The 2010 movie ?The Social Network? added to Saverin?s fame after it portrayed him as a scorned friend who provided the company?s early financing and then was squeezed out. In the film, written by Aaron Sorkin, Saverin was portrayed by Andrew Garfield, who will play Spider-Man in ?The Amazing Spider- Man.?

Saverin?s Investments

Saverin moved to the U.S. in 1992, and became a citizen in 1998, his spokesman said. He has invested in Asian, U.S. and European companies, according to his spokesman.

He plans to invest in Brazilian and in other global companies that have strong interests in entering the Asian markets. ?Accordingly, it made the most sense for him to use Singapore as a home base,? Goodman said in the statement.

His U.S. holdings include Jumio Inc., an online payments company, and ShopSavvy Inc., a price-comparison service.

Renouncing citizenship is an option chosen by increasing numbers of Americans. A record 1,780 gave up their U.S. passports last year compared with 235 in 2008, according to government records.

[Related: Facebook IPO Said to Get Weaker-Than-Expected Demand]

Income-tax rates for top U.S. earners will rise to 39.6 percent from 35 percent next year, and rates on capital gains and dividends also are scheduled to rise unless Congress blocks the increases.

?Tax Cost?

?It?s a loss for the U.S. to have many well-educated people who actually have a great deal of affection for America make that choice,? said Richard Weisman, an attorney at Baker & McKenzie in Hong Kong. ?The tax cost, complexity and the traps for the unwary are among the considerations.?

Some of the world?s largest wealth-management firms have ramped up efforts to fight tax evasion ahead of Washington?s implementation of the Foreign Account Tax Compliance Act, known as Fatca, which seeks to prevent tax evasion by Americans with offshore accounts. HSBC Holdings Plc, Deutsche Bank AG, Bank of Singapore Ltd. and DBS Group Holdings Ltd. all say they have turned away business.

The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients. That means additional compliance costs for banks and fewer investment options and advisers for all U.S. citizens living abroad, which may depress banks? returns.

Facebook plans to price its IPO on May 17, offering 337.4 million shares at $28 to $35 each. The shares will be listed on the Nasdaq Stock Market under the symbol FB. Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc. are leading the sale.

FUCK YOU UNCLE SAM

[epitome]

The US was good enough for his education and to make his billions and this is how he says thanks to her.

It's like telling a prostitute you'll pay her when you're done and then skipping out.

[HushMoney]

The 2010 law, to be phased in starting Jan. 1, 2013, requires financial institutions based outside the U.S. to obtain and report information about income and interest payments accrued to the accounts of American clients.

How exactly can the U.S. force foreign banks to scratch their nuts let alone do the job of the IRS for them?

[iSpyCams]

Originally Posted by epitome

The US was good enough for his education and to make his billions and this is how he says thanks to her.

It's like telling a prostitute you'll pay her when you're done and then skipping out.

It's actually a little bit more like telling your pimp you've outgrown them and moving on.

[Rochard]

I'm sure there is a better way to avoid paying taxes.

[geedub]

Originally Posted by epitome

The US was good enough for his education and to make his billions and this is how he says thanks to her.

It's like telling a prostitute you'll pay her when you're done and then skipping out.

You always pay hookers after you nut.

[HushMoney]

Don't blame him, at all.

[geedub]

Originally Posted by HushMoney

How exactly can the U.S. force foreign banks to scratch their nuts let alone do the job of the IRS for them?

A lot of them already comply to know your customer bullshit since the patriot act in the USA.

[epitome]

Originally Posted by pompousjohn

It's actually a little bit more like telling your pimp you've outgrown them and moving on.

Ah I forgot he provided the seed round to Facebook, which is based in Singapore, after he moved to Singapore.

When you leave your pimp you don't get to take the share he made with you.

Shares were issued when he was a US citizen living in the US and should be taxed as such.

If he starts or funds the next big thing while in Singapore and not a US citizen then that is his business.

[Bjorn]

alot of the rich are leaving US, i dont blame them at all

[DamageX]

Originally Posted by epitome

The US was good enough for his education

I'm pretty sure he paid for that himself. It's not like he attended community college or anything...

[Bladewire]

He was legally fucked by Zuck, but still ends up a billionaire. Amazing

[sperbonzo]

The US is the only country in the world, beside Vietnam, that taxes citizens that do not reside here, even if they never come back for the rest of their lives.



.

[epitome]

Originally Posted by DamageX

I'm pretty sure he paid for that himself. It's not like he attended community college or anything...

Fair point.

[Tom_PM]

Let the dude leave, it's better than him whining about how he's better than the hourly wage earners who are also somehow ruining his life by asking for a fair tax system. Or something along those lines.

[Barefootsies]

Originally Posted by sperbonzo

The US is the only country in the world, beside Vietnam, that taxes citizens that do not reside here, even if they never come back for the rest of their lives.

We have wars to pay for yo.

[DWB]

Good for him. People are dropping their US citizenship in record numbers.

[pornguy]

Sorry to say but there is a law that will allow them to nail him for up to 10 years after he has dropped his citizenship.

[pimpmaster9000]

The government literally owns you...you literally owe money to your government for just being alive...

[HushMoney]

Originally Posted by pornguy

Sorry to say but there is a law that will allow them to nail him for up to 10 years after he has dropped his citizenship.

link please

[brentbacardi]

Originally Posted by pornguy

Sorry to say but there is a law that will allow them to nail him for up to 10 years after he has dropped his citizenship.

I call Bullshit! I plan on renouncing my citizenship and moving abroad for good in a few years myself, so they better not add any new laws by then!

[Kolargol]

Originally Posted by HushMoney

link please

http://www.irs.gov/businesses/small/...=97245,00.html

[RyuLion]

Originally Posted by sperbonzo

The US is the only country in the world, beside Vietnam, that taxes citizens that do not reside here, even if they never come back for the rest of their lives.



.

[stephane76]

Originally Posted by Kolargol

http://www.irs.gov/businesses/small/...=97245,00.html

Holly crap, i had no idea...

[RyuLion]

p.s. He will be happy outside of the US..as long as knowone knows who he is or he makes noise..

[moeloubani]

Originally Posted by sperbonzo

The US is the only country in the world, beside Vietnam, that taxes citizens that do not reside here, even if they never come back for the rest of their lives.



.

pretty sure Canada is that way

[sperbonzo]

Originally Posted by moeloubani

pretty sure Canada is that way

No. It is not. A friend of mine just moved to Panama. He is from Toronto, and as long as he is in Canada less than 6 months of the year, declares Panama as his residence, and does not maintain any property or bank accounts in Canada, he is not liable to Canadian taxes. Trust me on this, this is part of my business.

[sperbonzo]

Originally Posted by brentbacardi

I call Bullshit! I plan on renouncing my citizenship and moving abroad for good in a few years myself, so they better not add any new laws by then!

You should also take a look at IRC 877A

Google it, and enjoy.... (and by enjoy, I mean cringe)

[epitome]

Originally Posted by sperbonzo

No. It is not. A friend of mine just moved to Panama. He is from Toronto, and as long as he is in Canada less than 6 months of the year, declares Panama as his residence, and does not maintain any property or bank accounts in Canada, he is not liable to Canadian taxes. Trust me on this, this is part of my business.

That is exactly what Shap did. (not exposing any secrets, he publicly disclosed here)

[DWB]

Originally Posted by HushMoney

link please

Originally Posted by brentbacardi

I call Bullshit! I plan on renouncing my citizenship and moving abroad for good in a few years myself, so they better not add any new laws by then!

If the IRS *thinks* you renounced your citizenship to avoid taxes, they can tax you for up to 10 more years. Not a new law, it's existing.

American freedom at work.

Not sure how legally they could if you were no longer a citizen, but it's on the books saying they can.

[epitome]

Originally Posted by DWB

If the IRS believes you renounced your citizenship to avoid taxes, they can tax you for up to 10 more years.

American freedom at work.

Not sure how legally they could if you were no longer a citizen, but it's on the books saying they can.

Considering he moved to Singapore in '09 and renounced his citizenship right before the IPO of the American company that makes up the bulk of his wealth, sounds like the IRS has a great case against him.

[MaDalton]

Originally Posted by DWB

Good for him. People are dropping their US citizenship in record numbers.

getting all the illegal immigrants a citizenship would make up for that

[BlackCrayon]

don't want to pay taxes then you shouldn't be able to profit from that country. the most disgusting thing is that while the amount they would pay on taxes is huge they would still rich as all hell afterwards. fucking greed.

[Nikki_Licks]

Originally Posted by crucifissio

The government literally owns you...you literally owe money to your government for just being alive...

No doubt, And fuck this worthless government! Mother fuckers........

[sperbonzo]

Originally Posted by BlackCrayon

don't want to pay taxes then you shouldn't be able to profit from that country. the most disgusting thing is that while the amount they would pay on taxes is huge they would still rich as all hell afterwards. fucking greed.

Seriously? They didn't use the roads or infrastructure more than you did... First of all they probably paid more taxes than you will in your entire life. Secondly they didn't use any more resources than anyone else and by living elsewhere, they won't use ANY resources in the US anymore (as all other countries recognize when their citizens reside elsewhere) Thirdly they created a he'll of a lot more jobs than you will.

[Why]

Originally Posted by HushMoney

How exactly can the U.S. force foreign banks to scratch their nuts let alone do the job of the IRS for them?

they deny their ability to move USD, they also deny their ability to wire in and out of america.... there are lots of ways to diplomatically put the squeeze on someone.

[beerptrol]

Originally Posted by sperbonzo

Seriously? They didn't use the roads or infrastructure more than you did... First of all they probably paid more taxes than you will in your entire life. Secondly they didn't use any more resources than anyone else and by living elsewhere, they won't use ANY resources in the US anymore (as all other countries recognize when their citizens reside elsewhere) Thirdly they created a he'll of a lot more jobs than you will.

no shit sherlock. someone making a billion and paying 10% will pay more dollar wise than someone paying 20-30% of 50k

[LiveDose]

The way our government wastes taxpayers dollars on every level the anger should be directed there and not towards savvy business people who are making a personal decision to protect their assets.

The tax code here is so backwards and archaic it's ridiculous.

[TheSquealer]

Originally Posted by HushMoney

How exactly can the U.S. force foreign banks to scratch their nuts let alone do the job of the IRS for them?

Simple, if they want to do business in $, they have to follow whatever rules the US government chooses to apply.

[12clicks]

Originally Posted by PR_Tom

Let the dude leave, it's better than him whining about how he's better than the hourly wage earners who are also somehow ruining his life by asking for a fair tax system. Or something along those lines.

So funny watching people who pay nothing talk about a "fair" tax system.

[12clicks]

Originally Posted by BlackCrayon

don't want to pay taxes then you shouldn't be able to profit from that country. the most disgusting thing is that while the amount they would pay on taxes is huge they would still rich as all hell afterwards. fucking greed.

Fucking greed makes the bottom think the top should pay more for something than the bottom does.
A loaf of bread costs each of us the same.
Public services come free for the rabble but the rich a forced to pay millions for it.

Fucking greedy, unable, rabble

[VenusBlogger]

ZUCKER-BERG (SUCKER means... well, we all know that it means and BERG means MOUNTAIN in GERMAN).. So ZUCKER-BEERG STOLE the idea of facebook to the brazilian guy...

The brazilian gazillian guy was the creator of facebook.

[TheSquealer]

Originally Posted by VenusBlogger

The brazilian gazillian guy was the creator of facebook.

[Slappin Fish]

Originally Posted by sperbonzo

Seriously? They didn't use the roads or infrastructure more than you did... First of all they probably paid more taxes than you will in your entire life. Secondly they didn't use any more resources than anyone else and by living elsewhere, they won't use ANY resources in the US anymore (as all other countries recognize when their citizens reside elsewhere) Thirdly they created a he'll of a lot more jobs than you will.

Seriously? you are thick. and I hate taxes.

"Saverin moved to the U.S. in 1992, and became a citizen in 1998 his spokesman said..." Tax rates weren't so different little over a decade ago, didn't bother him then did it.

Still to this day it is impossible for a google or a facebook to emerge outside the US? Why do you think that is. Let me give you a hint... it isn't just about roads or natural resources.

[MetaMan]

Um he deserves to leave. He is smart, wealthy and does not want to pay for greedy losers in America who do not want to work.

[acrylix]

Originally Posted by Slappin Fish

Seriously? you are thick. and I hate taxes.

"Saverin moved to the U.S. in 1992, and became a citizen in 1998 his spokesman said..." Tax rates weren't so different little over a decade ago, didn't bother him then did it.

He's 30 years old now. Meaning he moved to the U.S. when he was 10 or 11 years old. Got his citizenship 6 years later as a teenager. How many kids do you know who are worrying about tax rates at that age?

[SomeCreep]

Hmmm, I guess he'd rather be a citizen of Singapore than pay 1 billion dollars in taxes (30% capital gains tax.)

[Slappin Fish]

Originally Posted by acrylix

He's 30 years old now. Meaning he moved to the U.S. when he was 10 or 11 years old. Got his citizenship 6 years later as a teenager. How many kids do you know who are worrying about tax rates at that age?

Doesn't make it much better.

His wealthy parents brought him to the US for added security. "His family moved to Miami to find a safer place to live". Take advantage of the added security others people taxes paid for, then fuck off when you don't need it anymore.

Personally I am actually dead against citizenship-based taxes. But in this case, it's American sourced funds, from an American company, by a guy whose family voluntarily brought him to the US for what it has to offer, it is just pushing it.

[DamageX]

Originally Posted by Slappin Fish

Doesn't make it much better.

His wealthy parents brought him to the US for added security. "His family moved to Miami to find a safer place to live". Take advantage of the added security others people taxes paid for, then fuck off when you don't need it anymore.

Personally I am actually dead against citizenship-based taxes. But in this case, it's American sourced funds, from an American company, by a guy whose family voluntarily brought him to the US for what it has to offer, it is just pushing it.

It's called "globalization" and "free market competition". The more the US tries to fight it, the more they shoot themselves in the foot and risk alienating additional great minds and make them move elsewhere. Yes, the US is still the greatest thing since sliced bread, but I'd put money on that no longer being the case in a decade or two.

[Captain Kawaii]

Goldman Sachs leading the sale... LMFAO... The Queens of Pump and Dump - no wonder KTLA is encouraging people to buy buy buy FB stock. lol.