Facebook Co-Founder Resigns Citizenship to Escape High U.S. TaxesBy: Shawn Hess - May 12, 2012
If you haven’t been living under a rock you know Facebook is about to go public and that current estimates value the company in the $90 billion+ range. Essentially, everyone with stock in the company is about to have a big payday.
At some point going public became an inevitability and for those who saw it coming, they have been doing everything they can to reduce the amount of money the the US government will take from them. Eduardo Saverin, a co-founder of Facebook, is one of those stakeholders, and he currently owns 4% of the company.
You might remember Saverin was one of the members of the Facebook team who turned around and sued Zuckerberg after he was forced out of the loop at the company. Apparently he contributed a great deal to the financial workings that allowed the site to launch and ultimately become a success. Long story short, he won some undisclosed settlement, which he probably deserved.
Back to the tax thing. The Brazilian-born Saverin became a US citizen in 1998 after living in the country for over five years. According to Bloomberg, He joined an internal Revenue Service list of people who chose to denounce their US citizenship as of Aril 30th.
Tom Goodman, a spokesman for Saverin, told Bloomberg, “Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,”. With the much lower capital gains taxes in Singapore it makes sense from a financial point of view. However, it’s bound to raise eyebrows since Saverin gained his Harvard education and his immense wealth in the United States.