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Facebook Co-Founder Resigns Citizenship to Escape High U.S. Taxes

Co-founder Eduardo Saverin joins a long list of millionaires who denounce their citizenship in order to avoid paying exorbitant U.S. taxes

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Facebook Co-Founder Resigns Citizenship to Escape High U.S. Taxes
[ Business]

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.

Facebook Co-Founder Resigns Citizenship to Escape High U.S. Taxes
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  • Renaldo

    In this day and age, it’s counterproductive to try to tax indididuals or groups of people who have incorporated. They can simply move elsewhere. Taxes are supposed to be levied with the consent of the taxpayers. If people don’t agree to pay these outrageous taxes, and if they don’t receive a commensurate benefit from the government “services” that are paid for by these taxes, why shouldn’t they go someplace where they’re more welcome?

    There is nothing keeping Facebook in silicon valley. They can operate anywhere in the world. California and the USA don’t offer them anything that they can’t get most other places. Corporate taxes, and especially capital gains taxes, are an evil that needs to be eradicated. Personal incomes are already taxed at an outrageous rate to fund the 50% of US workers who pay NO federal income tax (not to mention the many non-workers who pay nothing). To tax someone multiple times is immoral and unsustainable in this global economy.

  • jon

    If people come here to make money, they should at least pay taxes on it. This Country gave him the opportunity to prosper, now he wants to take all the money and run without paying the taxes when his company is about to go public, he can still pay his share of taxes and be a very rich man, this is whats wrong with the world, he still becomes extremily rich while paying taxes earned in this country that gave him that chance. what a dirtbag.

    • hector

      What’s wrong with the world is sheep keep thinking PAPER with absolutely NO BACKING is MONEY.

      Left or right, you’re both wrong. Same $h!t, different pile.

  • http://www.LAokay.com Steve G

    Hey listen, if that’s what he wants to do with his money, so what? At least he’s giving up his rights as a US citizen and moving away. If the world goes to hell, he’ll be one less American we can worry about. That said my choice would be to keep my citizenship and create an organization to help keep jobs here in America.

    • hector

      now why would the “powers that be” want more jobs in America when they are trying to destroy the economy in order to create a North american dollar and further the global agenda?

      we couldn’t have done it fifteen years ago due to the fact the currencies were all so far apart in value. Soon, you’ll beg for a new, unified dollar, further selling our country down the river for more paper, or plastic, in canada’s case.

      FACT is, this country is going to hell, they all are, and soon all the sheep will be bleating for their world dollar, probably in my lifetime. Hopefully though, we’ll cut the head off the snake before then.

  • Karen

    denouncing facebook. Hope others feel the same will not participate in the greed!!!

  • Beda

    Is not what all big Corporations do?
    make money and take it to another Country, what about all the Bank’s Fiasco , at least this young man is more than intelligent, taking his money to another Country and enjoy his life!!!!!! I don’t blame him!!!

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