- Feb 13, 2005
- Reaction score
- Wildwood New Jersey
Facebook co-founder renounces citizenship to avoid tax
Facebook Inc co-founder Eduardo Saverin has renounced his U.S. citizenship, according to an Internal Revenue Service report, days before the company's initial public offering. The news, first published by Bloomberg on Friday, was based on an IRS notice late in April that named people "who
have chosen to expatriate."
The offering could leave Saverin, who once owned 5 percent of the company, with a hefty capital-gains tax bill.
Saverin now lives in Singapore, an Asian city-state that has no capital-gains tax. There is a minimum 15 percent rate for long-term capital gains in the United States for people in higher-income brackets.
Saverin, who was born in Brazil, was educated in the United States at Harvard, where he co-founded Facebook with Mark Zuckerberg and others.
hopefully they can seize some of his assets.. :twisted:
In August 1996 the Republicans pasted some anti-taxpatriate language into the Health Insurance Portability & Accountability Act. This law now subjects expatriates with a net worth of over $500,000 to taxation on their income earned in the U.S. for ten years from the time they renounce their citizenship, no matter where they live or whose flag they salute.
The latest effort to keep intrepid taxpatriates on the reservation was passed with no fanfare in early October. A little-noticed provision of the Illegal Immigration Reform & Immigrant Responsibility Act of 1996 says, in essence, that Americans can still renounce their citizenship and flee to tax havens like the Bahamas, Ireland and Switzerland. But if they do, they can't necessarily come back to the U.S., not even to visit the grandkids or attend their college reunions.
Under the new law, the taxpatriate-any expatriate for that matter-must apply for a visa for every visit.
Daniel Patrick Moynihan (D-N.Y.), the Senate Finance Committee's ranking Democrat, thinks that treating taxpatriates like illegal immigrants is a bad idea.