Eduardo Saverin, Facebook Co-Founder, Renounces U.S. Citizenship in Advance of IPO

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Eduardo Saverin, the billionaire Facebook co-founder portrayed by Andrew Garfield in The Social Network, is no longer an American citizen.

Saverin, 30, renounced the U.S. citizenship he gained as a teenager in advance of the company's impending IPO, a move met with criticism.

He's accused of trying to skip out on taxes with the move, though the Brazilian-born resident of Singapore has done nothing illegal at any point.

Saverin

Eduardo Saverin co-founded Facebook at age 21, was forced out two years later, sued CEO Mark Zuckerberg and ultimately settled out of court.

He was given a share of the company that left him phenomenally wealthy.

His stake, 4 percent of the company, will most likely be worth more than $3 billion when Facebook goes public Friday. Hence his exit now.

Saverin joins a growing number of people giving up U.S. citizenship, a move that can trim their tax liabilities when residing in lower-tax nations.

Said Tom Goodman, a spokesman for Saverin, in an e-mailed statement:

“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time.”

He professes ignorance about his taxes and refuses to discuss his finances.

“This had nothing to do with taxes,” he insisted. “I was born in Brazil, I was a U.S. citizen for about 10 years. I thought of myself as a global citizen.”

Saverin renounced U.S. citizenship “around September”, according to his spokesman.

Singapore doesn’t have a capital gains tax. It does tax income earned in that nation, as well as “certain foreign- sourced income,” according to reports.

Saverin won’t escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from stock holdings.

Renouncing your citizenship in advance of an IPO is “a very smart idea,” said one expert, “Once it’s public you can’t fool around with the value.”

Saverin’s decision to leave could have been a wager that the cost of an exit tax now - 15 percent of whatever valuation he could get the IRS to agree to - would be far less than the 35 percent or more in estate tax his heirs would face.

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Starhub warning in a form of threat. There r two options given 1- take the serving BILL without argument or 2- invest in revenue like lawyers service , court service and many more struggling waiting for business. My advise to all fellow Sporeans - DO NOT SUBSCRIBE LINE OTHER THAN THE PREPAID VERSION. LETS END THE STARHUB VETO POWER MANIPULATING SUBSCRIBERS AT THEIR SELFISH BENEFITTING END. i DONT BELIEF HOW EDUARDO SAVERIN THE FACEBOOK CO FOUNDER CAN RENOUNCES US CITIZEN TO BE PREYED IN SPORE'S BUSINESS VETO-CURACY. GOOD LUCK EDUARDO! GOOD LUCK MY FRIEND!

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I don't blame him, the federal government primarily the democrats are sucking the life out of this economy driving all the wealth out. Wake up people the rich will still be rich, it's just the government will be deciding who is rich and who is poor.

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How about those Americans who work hard and pay the way of those who love hand outs. I would give up my citizenship because I am tired of paying for those who are not. Why not just a flat tax for all?

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Dude he should never be allowed back in the us even for work because we all know he will take his cash with him that other clown mark is an idiot too

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Can you blame him, with that clown, Obama in office.

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The rich american way..... Ducking out on paying taxes. Dnt wrry im sure repubs everywhere are taking note!

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