Is Facebook Co-Founder Eduardo Saverin Renouncing His U.S. Citizenship To Avoid Paying Taxes?
If you don’t know Saverin’s name, you’re not alone. Saverin is one of the founders of Facebook. But, if you’ve seen The Social Network, then you already know that he’s also the guy that Mark Zuckerberg stabbed in the back and pushed out of the company years ago. So, he hasn’t been in the spotlight for some time with regards to Facebook. However, he’s also the guy who still retains a four percent share of Facebook and stands to make somewhere in the neighborhood of 4 billion dollars soon after Facebook goes public. Yep, that’s right. The guy is set to become $4 billion richer anyday now! So, you better get familiar.
That shouldn’t be too hard, though. After all, because of his huge windfall, Saverin is making lots of headlines right now. Part of that is good for him—did we mention the $4 billion?—but part of that is bad. You see, recently, Saverin announced that he was renouncing his U.S. citizenship and moving to Singapore. He explained that he no longer likes the way America operates and that he wants to move out of the country ASAP.
But, there’s another reason it’s beneficial for him to renounce his citizenship. By doing so, Saverin will avoid paying Uncle Sam millions of dollars when he collects his $4 billion payout from Facebook. So, he’s decided to move to Singapore and reside there, because they don’t have a capital gains tax in place. As a result, he won’t be subjected to the same kinds of taxes that he’d be subjected to in America. The native of Brazil will still have to pay some taxes, but he’ll get to keep a much larger cut of his billion-dollar fortune.
Do you think that’s fair? Are you buying Saverin’s explanation that he’s not just moving to Signapore because of his sudden windfall? And, to put things into perspective: Would you move out of the United States and renounce your rights as a U.S. citizen if you ever came into a large sum of money—or would you stay in the U.S. and give up a part of it to remain here? Saverin made his decision. What would yours be?