Skip to comments.GOODBYE, AMERICA: Billionaire Facebook Cofounder Renounces Citizenship (Your taxes are not for me)
Posted on 05/11/2012 2:24:03 PM PDT by SeekAndFind
Billionaire Facebook cofounder Eduardo Saverin is renouncing his citizenship ahead of the company's IPO at the end of next week.
Saverin is the cofounder who got booted from the company WAY back in 2005. They made a movie about it.
His 4 percent stake is worth about $4 billion and he's going to save a boatload on taxes with the move.
Singapore, where Saverin lives, does not have a capital gains tax.
He will have to pay an exit tax on his holdings, but it will be at Facebook's valuation now, not after the IPO.
“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” Tom Goodman, a spokesman for Saverin, tells Bloomberg's Danielle Kucera, Sanat Vallikappen and Christine Harper.
Mostly, Saverin got in the way of Facebook's early development. At one point, he froze the company's bank account because he wasn't getting enough attention. Still, he was its first outside investor. And for that, insiders have described him as one of the most important people in company history.
(Excerpt) Read more at businessinsider.com ...
Or so he hopes. The IRS is big on re-evaluations. I doubt he can miss the IPO by a week and get the bargain valuation. But, I read elsewhere he applied for this last year, before the IPO was imminent.
RE: His 4 percent stake is worth about $4 billion and he’s going to save a boatload on taxes with the move.
Actually it isn’t as simple as that. The IRS might demand that you pay taxes that you owe them before you can successfully renounce citizenship.
And I’m not sure leaving America for the still in effect, one party ruled Singapore (where the press is not free ) is a good idea.
He can come back here anytime. The authorities don’t care about non-citizens entering this country.
It’s the citizens who are prosecuted.
I agree with Eduardo. I’d be nothing but a cloud of dust too if I had any money. I remember those old “(_______) Is For Lovers” bumperstickers. We need a new one. “America Is For Freeloaders”.
My God, how old is that guy? 12? I gotta get into this startup biz. I came up with a great idea for a website the other day where people can sell their junk in an auction format. Whoever bids the highest wins. I call it Auctionbay. Pretty cool huh?
Well... for you and me. I think it's a good idea for him.
Good think he didnt get dual citizenship in Switzerland or the leftists would go nuts posting obscene comments about him on newspaper websites.
RE: I came up with a great idea for a website the other day where people can sell their junk in an auction format. Whoever bids the highest wins
Doesn’t eBay already provide this facility?
Did you also invent the question mark?
Good for him (even if the green tie doesn’t go with that blue shirt and the collar from another shirt)! Who wouldn’t do the same in his pair of Florsheims.
Will the U.S. gummint hear? Don’t kid me, remember when John Templeton renounced U.S. citizenship? We’ve been hearing about reforming the tax code at least since then.
“The IRS might demand that you pay taxes that you owe them before you can successfully renounce citizenship.”
No “might” about it. He renounced his citizenship in 2011 and it was just noticed on the IRS lists for April. The IRS has already gotten their pound of flesh. The “Exit Tax” treats all assets held as though they were sold at the time renunciation is granted. That means the IRS had to agree with the valuation of his shares last Sept when he applied, or the application wouldn’t have been approved. I doubt the IRS has the option to get more money out of him just because his shares went up in value after the IRS “virtually sold” them. The shares could go down in value, after all, especially since analysts are saying the IPO has been wildly overvalued, and the IRS isn’t going to refund the difference either.
Yeah, leaving one one party state for another one party state!
He is....er...let me think.....oh yes, that’s it.
Notice the trend...”What’s mine is mine, but you really should pay more taxes.”
I think about as much about him as I do about Facebook.
RE: Yeah, leaving one one party state for another one party state!
By one party state (in the USA), are you referring to California or the USA?
Good for him.
He felt the crash into the iceberg and knew the Titanic was sinking. He packed his bags and left to avoid going down with the ship.
“Whoever bids the highest wins. I call it Auctionbay. Pretty cool huh?”
Yahoo Auctions beat you to the punch ;-).
RE: Dont kid me, remember when John Templeton renounced U.S. citizenship? Weve been hearing about reforming the tax code at least since then.
You know, I’ve been thinking about this whole tax business and it occurred to me that the US government is going about this the wrong way.
If you want money to come flowing IN to the US, you have to COMPETE with the likes of Switzerland, the Cayman’s and Singapore.
Why not do as they do and make our tax code MORE GENEROUS and ATTRACTIVE to guys like Eduardo to keep their money here instead of making it more onerous so that they would leave?
If you really want to break the stranglehold of Switzerland, COMPETE with the banking and tax laws of Switzerland instead of hiring armies of IRS agents to harass law abiding citizens and confiscate what they earn worldwide.
“Good think he didnt get dual citizenship in Switzerland or the leftists would go nuts posting obscene comments about him on newspaper websites.”
Or leftist right here on FR.
IIRC, he did this months ago, September.....value then was debatable
[The 1996 law included a provision to bar entry to any individual “who officially renounces United States citizenship and who is determined by the Attorney General to have renounced United States citizenship for the purpose of avoiding taxation by the United States.” There is no known case of this provision, known as the Reed Amendment, having ever been enforced.]
“1996 HIPAA (Health Insurance Portability and Accountability Act of 1996), H.R. 3103, 104th Congress, page 158” (PDF). Retrieved 2012-05-11.
So, at least theoretically, this guy would be rejected for a travel visa to the US.
I have a cooler ideer. A discussion forum where those who don’t get an obvious joke (such as #6) get their credit card charged for $10.
Exactly. Eduardo is now investing (conservatively, I read in the WSJ)in Singapore. D’uh!
Where in the article mentions his political leanings?
He is smart looking after his interests. There is nothing wrong with that.
This is the modern version of Going Galt I guess
Yes, but those are taxes on the value NOW, not after the IPO.
I’m guessing he’s pretty sure it’s a good idea.
The desired condition is a civil society and rule of law. Elections and the free press are just tools that have often been effective at helping societies get to that goal.
OTOH, free elections do not necessarily mean that the goal will be reached. See 1930s Germany and the Middle East today.
A one party state is not necessarily oppressive, it's just that it tends to head in that direction because there are no checks and balances.
One nice thing about FR...no one here ever posts that kind of stuff about people.
However Rogers did not renounce his citizenship, as far as I know
This guy doesn't look very “Singaporean” if you know what I mean
But I suspect to guys like this, nationality is nothing more than where you own a home and have passport
Barak Hussein Obama, "I don't care about more revenue, only fairness. If you have more, you should pay more or leave."
LOL........I bet the left never saw that coming!
It’s a exit tax... and it mark to market. An it’s not cheap.
Also, Singapore... mandated universal health care (tho’ I should be careful there... it seems very complicated) and strict gun control.
> I agree with Eduardo. Id be nothing but a
> cloud of dust too if I had any money.
Leave... but for where. Out of the 200 odd places to pick, you’ve either got dictators, religious kooks, gun laws, or socialism. And those are just the best options.
LOL. right on.
It’s mark to market.
Since he can’t sell them at moment, the IRS decides just what the “fair” market price would be. I’d be really surprised if the IRS doesn’t think his shares are worth +/- $4 billion.
Like that IRS likes to say... “Bend over”. Followed by a evil chuckling laugh.
Their gun control is not our gun control. They have what I call the "Singapore Solution"--possess or use a firearm, and you're as good as dead. The "Singapore Solution" will disarm criminals, and for those criminals who commit non-gun crimes, they have other very strict justice. The problem with the Singapore Solution, of course, is that you become completely dependent on the government not turning on you. The dicator had better be benevolent.
Our gun control idea is to disarm citizens while coddling criminals. That might be even dumber.
PS: No knowledge or opinion about Singapore medical system.
Today, China openly threatens war upon any tiny nation around it that disputes China owning the natural resources of the entire South China Sea, even if it's right off the coast of Malaysia in the Spratley Islands some 600-1000 miles off China's coast.
Good luck living to old age in that ten mile wide city-state of Singapore with your big ass pile of Quatloos, Mr. Saverin.
Good. Starve the B.
RE: No knowledge or opinion about Singapore medical system.
A brief introduction to Singapore’s Healthcare system can be found here:
If you don’t like Obamacare, I’m not sure you’ll like Singapore’s system.
But what does Eduardo care? With $4 Billion, he can get the best healthcare in the world.
That's not the way it is now.