Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO

[Tony_FLADEM]

Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.

Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin’s stake is about 4 percent, according to the website Who Owns Facebook. At the high end of the IPO valuation, that would be worth about $3.84 billion. His holdings aren’t listed in Facebook’s regulatory filings.

Saverin, 30, joins a growing number of people giving up U.S. citizenship, a move that can trim their tax liabilities in this country. The Brazilian-born resident of Singapore is one of several people who helped Mark Zuckerberg start Facebook in a Harvard University dorm and stand to reap billions of dollars after the world’s largest social network holds its IPO.

http://www.bloomberg.com/news/2012-05-11/facebook-co-founder-saverin-gives-up-u-s-citizenship-before-ipo.html

If it wasn't for the United States there would probably be no Internet and no Facebook to make this person a billionaire.

[PatSeg]

1. How much money is enough?

That's what I'll never understand about greed, there evidently is no limit and any means is justified.

[otohara]

2. 1000+

[Hassin Bin Sober]

3. I guess I'm torn on this.

First off, I agree with the OP that he owes a fair share as Facebook wouldn't even exist if not for the US.

That said, I can't blame someone with dual citizenship, and not a native, for reducing the number of entities he has to pay taxes to.

But third of all, shame on us for allowing such "sham transactions" (that's what it would be called for us little people). I mean, the money was already "earned" and the "valuation" is already there. Taxes should be "due" before he can perpetrate his sham and move his citizenship. It's a US company with a "valution" attached to it.

[hifiguy]

6. Agreed on all points. nt

[Capt. Obvious]

4. New Republican attack ad

OBAMA AND THE DEMOCRATS SCARING AWAY THE JOB CREATORS

[PatSeg]

5. Yes, all 3500 jobs

According to Facebook, it employs a whopping 3500 people. These are money creators, but the republicans will continue to refer to them as "job creators".

[Capt. Obvious]

8. And compare that to lost productivity (millions)

due to other employers spending all day on their facebook accounts

[Spider Jerusalem]

7. Brazilian by birth, resident in Singapore, I don't know what he gains by being a US citizen

his family moved to the US when he was a kid, was becoming a US citizen something he had an active and conscious choice in? The US is the only country in the world that taxes on the basis of citizenship and not residency; why should someone who doesn't live in the US, and who probably has no intention of returning, be liable for US income tax? And renouncing US citizenship is not easy; the IRS levies an "expatriation tax" on all renunciants with taxable income of $145K or more, and/or a net worth of $2 million or more. For purposes of taxation all of the renunciant's worldwide assets are treated as if sold and taxed at market value.