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Facebook co-founder to save $67 million in taxes by renouncing citizenship

Written by Andre Yoskowitz (Google+) @ 17 May 2012 0:24 User comments (12)

Facebook co-founder to save $67 million in taxes by renouncing citizenship Last week we reported that Facebook co-founder Eduardo Saverin had renounced his U.S. citizenship and moved to Singapore.
By doing so, it looks like the billionaire will save about $67 million in federal income taxes, and that number will grow if the company's share price grows after it IPOs on Friday.

Saverin, who helped found the company with $15,000 of his money, was once a 40 percent owner. CEO and founder Mark Zuckerberg is said to have used shady tactics to reduce Saverin's stake by creating a new LLC in a different state that then purchased the original company and diluted his shares. Regardless, Saverin is said to be a 2-4 percent owner of the company, which should bring him a windfall of $2-4 billion tomorrow.

To come up with the savings on the tax bill, sources applied a 15 percent long-term capital gains rate to the shares expected price.

Saverin, for his part, has said his decision to move last September had little do with taxes and was completely due to his need to be a world traveler.

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12 user comments

117.5.2012 8:51

You have got to be kidding me.......

why doesnt he just buy GREECE.....make one hell of a holiday home right!


badman

217.5.2012 10:05

What the hell did I just step in? He's doing it to make himself a better world traveler? He's between 29-30 years old & supposed to be smarter than the teenaged angst idiocy of these kinds of acts!

He's going to need an army of crowbars to get his head out of his ass when he finally realizes what he's done. Then again... this kind of stupidity is usually 'light speed' terminal.

Or so we can hope...


317.5.2012 12:10

cant the us just extradite him from singapore on some charge or other?LMFAO

417.5.2012 14:36

I just can't wait till some 7th grade girl decides facebook is uncool and it goes down like myspace. Hopefully the jerk will be stuck with a lot of worthless stock cause as I understand it...once you renounce it we don't give it back!


Just my $0.02,

dEwMe

517.5.2012 15:26

Originally posted by dEwMe:
I just can't wait till some 7th grade girl decides facebook is uncool and it goes down like myspace. Hopefully the jerk will be stuck with a lot of worthless stock cause as I understand it...once you renounce it we don't give it back!
sure once he renouces it he can always apply for it again.

custom built gaming pc from early 2010,ps2 with 15 games all original,ps3 500gbs with 5 games all original,yamaha amp and 5.1channel surround sound speakers,46inch sony lcd smart tv.

617.5.2012 16:29

Pretty sad when you have to go to a communist country to avoid high democracy taxes. US wake up becuase more of your wealthy citizens will be leaving your deficit laden / spending country. I bet politicians will use greed to make people angry at him. I salute him in finding a better answer to this country's problems by leaving it. Just stay here on the plantation and the politicians will just keep using your greed and stupidity to take everything you have.

717.5.2012 20:41

dean30542, singapore is not a communist country.

818.5.2012 10:18

Originally posted by dean30542:
I salute him in finding a better answer to this country's problems by leaving it. Just stay here on the plantation and the politicians will just keep using your greed and stupidity to take everything you have.
And I'm sure the crooks, politicians, corrupt police & the propagated individuals in organized crime will make make his stay on his little naive little white ass all that much easier?

You must not travel much.

925.5.2012 13:46

Don't tie the dog to the roof while driving through Singapore.

1025.5.2012 16:52

where's my dog as she was there when i left the house & now she isn't?

1125.5.2012 16:56

From fetching a stick to being on a stick.

1226.5.2012 12:47

Originally posted by DADEO1:
From fetching a stick to being on a stick.
OOoooooo... that's just wrong... Tasty... but oh so wrong...

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