Facebook Co-Founder Drops U.S. Citizenship to Avoid Taxes

Sunday, May 13, 2012
Eduardo Saverin (Photo: The Harvard Crimson)

Proving once again the adage that wealth has no patriotism, billionaire Facebook co-founder Eduardo Saverin has renounced his U.S. citizenship to avoid a hefty tax bill when Facebook goes public on May 18.

 
Born in São Paulo, Brazil, in 1982, Saverin came to the U.S. at age 11 after his family learned that the boy was marked as a potential kidnapping victim by gangs that specialized in abducting the children of the wealthy for ransom.
 
He became a U.S. citizen in 1998, later earning a degree in economics at Harvard University and co-founding Facebook with classmates Mark Zuckerberg, Dustin Moskovitz, and Chris Hughes.
 
Fast-forward to 2012, and with the Facebook initial public offering expected to generate up to $96 billion, Saverin, who owns about 5% of the company, is set to enjoy a large payday, which would ordinarily yield a large tax bill as well. Saverin would have owed Uncle Sam much more if Zuckerberg hadn’t diluted his business manager’s shares as a result of a dispute over the direction of the social network Web site. Had that not happened, Saverin would have had some 34% of the company.
 
Although Saverin’s spokespeople have denied money had any bearing on his decision, the fact is that Saverin will save millions of dollars by being a citizen of the Asian city-state of Singapore, a low-tax haven where Saverin has lived since 2009.
 
As AllGov reported three months ago, about 1,000 Americans, most of them wealthy expatriates, renounce their citizenship every year, largely for tax reasons.
 
-Matt Bewig
 
To Learn More:
A Facebook Founder Renounces His U.S. Citizenship (by Quentin Hardy, New York Times)
Tax Evaders Renounce U.S. Citizenship (by Noel Brinkerhoff, AllGov)
 

Comments

WhattaDouchebag 2 years ago
god forbid he give something back out of his hundreds of millions. what a greedy piece of garbage.
todd 2 years ago
@ jemima...you obviously dont know what you are talking about. our corporations in this country are the most heavily taxed and regulated in the world. which is why they are leaving to other countries and unfortunately taking jobs with them.
Jemima 2 years ago
what else is new? most corporations in the u.s. pay very little (if any) taxes. why should this guy be any different? more power to him. at least singapore isn't starting unjust wars with their citizens money.
a patriot 2 years ago
pathetic
Dave 2 years ago
i hope that means that by cutting his us citizenship - he should also have to give up his us money and not accept anymore us money - it's only fair, right ?
Dixon Rochet 2 years ago
thank the republican party for stealing our public education, police,and fire department,in tax monies and now selling off our laws to tax evader for there gane of millions of dolliars, is this what we want our america to become a place for tax thiefs to do business?????
Antonio Abreu 2 years ago
a person that made fortune in the usa and leave to another country to void tax should not be able to return and the fortune should be block by the usa govermente and the adertisementrs on his web should cancel and restrict use of the facebook web.........it is not behavior for a decente bussines person... sincerely antonio abreu i am recomende that alkl users of facebook around to world stop to use it for a day all the same time......... h49r4
Brain 2 years ago
if you made it here, you need to contribute here, other thantimes a possible social disease.
steve grange 2 years ago
clueless article. you have zero understanding of tax la. he does not avoid the tax due upon sale of fb and he pays an "exit fee" to renounce the citizenship. utterly false statements throughout this piece of garbage. research your facts or pull this piece of false shit!
Jack 2 years ago
i have no problem with him renouncing his citizenship. it isn't as if he were born in brooklyn. i do have a problem with the monetary aspect of the decision. actually that whole gang of hoodies leaves a bad taste in my mouth. cure the cancer that my family and friends are dying of and you will have my eternal gratitude and respect. not for something as worthless and useless as facebook.

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