Facebook co-founder Saverin gives up US citizenship

May 11, 2012

One of Facebook's co-founders, Eduardo Saverin, who stands to make a bundle in the social network's share offering has renounced his US citizenship, records showed.

The move by Saverin, who lives in Singapore, could save the Brazilian native a bundle in US taxes.

Saverin, whose public spat with was featured in the 2010 film "The Social Network," is on a list of names published April 30 by the US Internal Revenue Service of those renouncing US citizenship.

His stake in after a losing a power struggle with Zuckerberg is believed to be between two and four percent. The website "Who Owns Facebook?" said his share would be worth around $3.4 billion.

Bloomberg News cited a spokesman for Saverin saying he had decided to renounce US citizenship because he intended to stay in Singapore, where he has invested in several startups.

"Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time," said Tom Goodman, a spokesman for Saverin, in an e-mailed statement to , which said Saverin renounced US citizenship last September.

US citizens normally pay taxes on all their worldwide income, regardless of where they live. But Saverin would likely escape much of those taxes because Singapore does not tax foreign-sourced income.

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User comments : 14

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Lurker2358
1.8 / 5 (16) May 11, 2012
Perfect example of why we need a revised tax code.

If you do business in the U.S., and own companies founded and based in the U.S. on machines in the U.S., then you should pay taxes in the U.S., citizen or not.

He's conning both governments, as well as the U.S. citizens especially, since he makes money off U.S. firms and citizens, and the international community who all made him what he is.
rwinners
1 / 5 (7) May 11, 2012
In this case, he can 'take it with him'.
Vendicar_Decarian
3 / 5 (8) May 12, 2012
He is simply offshoring himself like America's manufacturing sector has done.

And he would rather live in Singapore than anywhere else.

Today, living in Singapore is like moving to another city 50 years ago, and as the world grows ever smaller, it will soon be like moving to a different apartment down the block.

It is another argument for global governance.
ryggesogn2
1.3 / 5 (15) May 12, 2012
Another example of a sovereign individual, as described in The Sovereign Individual.
Squirrel
1.7 / 5 (12) May 12, 2012
To be fair to Saverin, if he was a citizen of any other nation other than the US he would not be taxed on what he earned outside that country. Its a unique peculiarity of the US tax system that it does.
ryggesogn2
1.3 / 5 (15) May 12, 2012
'Progressives' are appalled that anyone should be able to move to a jurisdiction that offers the individual a better deal.
Millions have been escaping California, New York, New England states to lower tax states for years.
Instead of using a carrot, as Sweden did by ending its wealth tax, 'progressives' prefer to use a big stick to force people to live where they do not wish to live.
Given the recent example of the Europeans, it is quite doubtful there will ever be a global state that will make all serfs to the state.
Shootist
1.3 / 5 (13) May 12, 2012
Perfect example of why we need a revised tax code.

If you do business in the U.S., and own companies founded and based in the U.S. on machines in the U.S., then you should pay taxes in the U.S., citizen or not.

He's conning both governments, as well as the U.S. citizens especially, since he makes money off U.S. firms and citizens, and the international community who all made him what he is.


His work. His money. Using the police power of the State to separate a person's property from a person is tyranny.

End the Income Tax.
ryggesogn2
1.6 / 5 (16) May 12, 2012
Using the police power of the State to separate a person's property from a person is tyranny.

Bastiat called it legal plunder.
Bottom line it is still plunder or theft.
Terriva
1 / 5 (11) May 12, 2012
It is another argument for global governance.
This doesn't sound very liberally...;-) Are you still sure, you're a convinced libertian? IMO the principle of the property origin is enough and it should be applied there: if you got your property in USA, you should pay the taxes in the USA. This principle wouldn't require the expansion of global jurisdiction - every country would care about its own part of income from taxes in independent way.
Duude
1.4 / 5 (11) May 12, 2012
To be fair to Saverin, if he was a citizen of any other nation other than the US he would not be taxed on what he earned outside that country. Its a unique peculiarity of the US tax system that it does.


That is a true statement, though many in their ignorance will deny it.
Midcliff
5 / 5 (1) May 12, 2012
@Lurker He's not conning anybody. He's just smartly taking advantage of existing law.

He still has to pay US taxes on anything he makes in the US.
He just doesn't pay US taxes on anything he makes elsewhere, in compliance with both countries' law.

I think it's unfair the US taxes foreign income, unless businesses can write off the foreign taxes they pay (just like we can write off the state taxes we pay). It sounds like double taxation otherwise.
Aryeh_Z
1 / 5 (3) May 12, 2012
This is part of an ongoing trend that started a few years ago. It will only accelerate in the next year.

What the Americans have done is in violation of all international norms and most likely, many treaties as well. It is a blatant act of imperialism to impose your tax and banking laws on other sovereign nations. Gun boat diplomacy meets dollar diplomacy on steroids.

The US has declared that it has sovereignty not over its territory but over its citizens. That is a radical and probably unconstitutional act. It is a throw back to the days when kings asserted sovereignty over their subjects irrespective of their location.
Vendicar_Decarian
5 / 5 (2) May 13, 2012
Poor RyggTard. He fails to realize that he is as sovereign as the facebook billionaire.

But I wonder why RyggTard doesn't renounce his American Citizenship given that he hates his own country with such a passion.

"Another example of a sovereign individual" - RyggTard

Obviously RyggTard feels he benefits from his life in the U.S. And yet he spends all his waking moments whining about how evil his own country is.

Libertarian Filth.
Vendicar_Decarian
5 / 5 (2) May 13, 2012
Quite the contrary. I commend him.

"'Progressives' are appalled that anyone should be able to move to a jurisdiction that offers the individual a better deal." - RyggTard

I just wonder why you don't leave as well. Aren't you going to get a better deal anywhere else, traitor?