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GOODBYE, AMERICA: Billionaire Facebook Cofounder Renounces Citizenship (Your taxes are not for me)
Business Insider ^ | 05/11/2012 | Nicholas Carlson

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 ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: citizenship; eduardosaverin; expats; facebook; facebookipo; loveitorleaveit; renouncecitizenship; tax; taxes
"Your taxes are not for me."

1 posted on 05/11/2012 2:24:09 PM PDT by SeekAndFind
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To: SeekAndFind
He will have to pay an exit tax on his holdings, but it will be at Facebook's valuation now, not after the IPO.

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.

2 posted on 05/11/2012 2:27:17 PM PDT by Pearls Before Swine
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To: SeekAndFind

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.


3 posted on 05/11/2012 2:28:25 PM PDT by SeekAndFind
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To: SeekAndFind

He can come back here anytime. The authorities don’t care about non-citizens entering this country.

It’s the citizens who are prosecuted.


4 posted on 05/11/2012 2:30:28 PM PDT by a fool in paradise (Barack Obama has cut and run from what he called "the right war".)
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To: SeekAndFind

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”.


5 posted on 05/11/2012 2:31:06 PM PDT by FlingWingFlyer (Dumb, dependent and Democrat is no way to go through life. - Rep. Louie Gohmert (R-Texas)
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To: SeekAndFind

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?


6 posted on 05/11/2012 2:32:24 PM PDT by GrandJediMasterYoda (Some day our schools will teach the difference between "lose" and "loose")
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To: SeekAndFind
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.

Well... for you and me. I think it's a good idea for him.

7 posted on 05/11/2012 2:33:33 PM PDT by UCANSEE2 (Lame and ill-informed post)
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To: SeekAndFind

Good think he didn’t get dual citizenship in Switzerland or the leftists would go nuts posting obscene comments about him on newspaper websites.


8 posted on 05/11/2012 2:34:49 PM PDT by TurboZamboni (Looting the future to bribe the present)
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To: GrandJediMasterYoda

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?


9 posted on 05/11/2012 2:35:16 PM PDT by SeekAndFind
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To: GrandJediMasterYoda
came up with a great idea for a website the other day where people can sell their junk in an auction format.

Did you also invent the question mark?

10 posted on 05/11/2012 2:36:06 PM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: SeekAndFind

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.


11 posted on 05/11/2012 2:37:28 PM PDT by Revolting cat! (Let us prey!)
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To: SeekAndFind

“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.


12 posted on 05/11/2012 2:38:47 PM PDT by Kellis91789 (The ultimate result of shielding men from the effects of folly is to fill the world with fools.)
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To: SeekAndFind
one party ruled Singapore

Yeah, leaving one one party state for another one party state!

13 posted on 05/11/2012 2:40:03 PM PDT by Revolting cat! (Let us prey!)
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To: SeekAndFind

He is....er...let me think.....oh yes, that’s it.

He’s liberal.

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.


14 posted on 05/11/2012 2:41:01 PM PDT by Da Coyote
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To: dfwgator
LOL!! No, but a friend of mine, a Dr. Alan Parsons, is working on a frickin' laser beam that will destroy earth. So that is why I call it "The Alan Parsons Project".


15 posted on 05/11/2012 2:41:24 PM PDT by GrandJediMasterYoda (Some day our schools will teach the difference between "lose" and "loose")
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To: Revolting cat!

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?


16 posted on 05/11/2012 2:43:34 PM PDT by SeekAndFind
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To: SeekAndFind

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.


17 posted on 05/11/2012 2:45:58 PM PDT by Gatún(CraigIsaMangoTreeLawyer)
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To: GrandJediMasterYoda

“Whoever bids the highest wins. I call it Auctionbay. Pretty cool huh?”

Yahoo Auctions beat you to the punch ;-).


18 posted on 05/11/2012 2:47:28 PM PDT by edh (I need a better tagline)
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To: Revolting cat!

RE: 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.

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.


19 posted on 05/11/2012 2:48:47 PM PDT by SeekAndFind
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To: TurboZamboni

“Good think he didn’t 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.


20 posted on 05/11/2012 2:49:04 PM PDT by Gatún(CraigIsaMangoTreeLawyer)
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To: SeekAndFind

IIRC, he did this months ago, September.....value then was debatable


21 posted on 05/11/2012 2:49:06 PM PDT by Gaffer
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To: a fool in paradise

[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.


22 posted on 05/11/2012 2:49:27 PM PDT by Kellis91789 (The ultimate result of shielding men from the effects of folly is to fill the world with fools.)
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To: GrandJediMasterYoda

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.


23 posted on 05/11/2012 2:49:46 PM PDT by Revolting cat! (Let us prey!)
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To: SeekAndFind

Exactly. Eduardo is now investing (conservatively, I read in the WSJ)in Singapore. D’uh!


24 posted on 05/11/2012 2:52:04 PM PDT by Revolting cat! (Let us prey!)
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To: Da Coyote

“He’s liberal.”

Where in the article mentions his political leanings?

He is smart looking after his interests. There is nothing wrong with that.


25 posted on 05/11/2012 2:54:41 PM PDT by Gatún(CraigIsaMangoTreeLawyer)
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To: Pearls Before Swine

This is the modern version of Going Galt I guess


26 posted on 05/11/2012 2:55:11 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: SeekAndFind

Yes, but those are taxes on the value NOW, not after the IPO.


27 posted on 05/11/2012 2:56:17 PM PDT by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: SeekAndFind

I’m guessing he’s pretty sure it’s a good idea.


28 posted on 05/11/2012 3:02:32 PM PDT by stuartcr ("When silence speaks, it speaks only to those that have already decided what they want to hear.")
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To: SeekAndFind
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.

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.

29 posted on 05/11/2012 3:03:11 PM PDT by Sherman Logan
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To: TurboZamboni

One nice thing about FR...no one here ever posts that kind of stuff about people.


30 posted on 05/11/2012 3:04:05 PM PDT by stuartcr ("When silence speaks, it speaks only to those that have already decided what they want to hear.")
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To: SeekAndFind
Jim Rogers moved his family there- good quality of life if you are wealthy

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

31 posted on 05/11/2012 3:11:05 PM PDT by silverleaf (Funny how all the people who are for abortion are already born)
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To: SeekAndFind

Smart.


32 posted on 05/11/2012 3:13:15 PM PDT by aMorePerfectUnion ("I'm comfortable with a Romney win." - Pres. Jimmy Carter)
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To: SeekAndFind
"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."

Barak Hussein Obama, "I don't care about more revenue, only fairness. If you have more, you should pay more or leave."

yitbos

33 posted on 05/11/2012 3:15:15 PM PDT by bruinbirdman ("Those who control language control minds." -- Ayn Rand)
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To: SeekAndFind

What’s Ebay?


34 posted on 05/11/2012 3:16:15 PM PDT by willyd (your credibility deficit is screwing up my bs meter...)
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To: SeekAndFind

LOL........I bet the left never saw that coming!


35 posted on 05/11/2012 3:19:01 PM PDT by blueyon (The U. S. Constitution - read it and weep)
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To: SeekAndFind

36 posted on 05/11/2012 3:19:36 PM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: Pearls Before Swine

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.


37 posted on 05/11/2012 3:22:39 PM PDT by BlueLandRed
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To: SeekAndFind
Seems perfectly rational to me.

You take a hard look at this country, its leaders in particular, its sense of entitlement among a large swath of the population and its decaying culture, Singapore looks good. Particularly if you're that wealthy.

That's the way I feel these days anyway.
38 posted on 05/11/2012 3:24:16 PM PDT by Jay Santos CP ("Idiocracy"... It's no longer just a movie.)
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To: FlingWingFlyer

> I agree with Eduardo. I’d 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.


39 posted on 05/11/2012 3:26:23 PM PDT by BlueLandRed
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To: stuartcr

LOL. right on.


40 posted on 05/11/2012 3:29:06 PM PDT by TurboZamboni (Looting the future to bribe the present)
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To: GeronL

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.


41 posted on 05/11/2012 3:30:04 PM PDT by BlueLandRed
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To: BlueLandRed
Also, Singapore... mandated universal health care (tho’ I should be careful there... it seems very complicated) and strict gun control.

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.

42 posted on 05/11/2012 3:39:09 PM PDT by Pearls Before Swine
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To: Pearls Before Swine
2012, the age of the geek billionaire. Is this a great country or what.
43 posted on 05/11/2012 3:50:13 PM PDT by hinckley buzzard
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To: Revolting cat!

LOL!


44 posted on 05/11/2012 4:41:34 PM PDT by GrandJediMasterYoda (Some day our schools will teach the difference between "lose" and "loose")
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To: Pearls Before Swine; BlueLandRed
In 1942, Singapore was conquered by the Japanese in about 45 minutes although it did take another week to destroy the last British defenses there.

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.

45 posted on 05/11/2012 4:45:53 PM PDT by The KG9 Kid (Semper Fi)
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To: SeekAndFind

Good. Starve the B.


46 posted on 05/11/2012 6:41:51 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: Pearls Before Swine; BlueLandRed

RE: No knowledge or opinion about Singapore medical system.

A brief introduction to Singapore’s Healthcare system can be found here:

http://en.wikipedia.org/wiki/Healthcare_in_Singapore

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.


47 posted on 05/11/2012 8:48:58 PM PDT by SeekAndFind
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To: SeekAndFind
Last I heard, we live in a free country.

That's not the way it is now.

48 posted on 05/12/2012 12:09:17 PM PDT by OldNavyVet
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