This article was submitted by iClimber
Interesting timing. Facebook co-founder Eduardo Saverin has said goodbye to his U.S. citizenship, just in time before the company’s initial public offering. By giving up his U.S. citizenship, Saverin will be saving an estimated $67 million in federal taxes on the $3.84 billion he is expected to collect when Facebook goes public, according to financial news service Bloomberg.
Saverin wants to become a permanent resident of Singapore, a place which has no capital gains taxes. This means that he will be saving even more money when he earns from future gains of his stock. The entire plan sounds flawless.
But not everyone is thrilled with Saverin’s move. The Los Angeles Times reported that two U.S. senators want to punish Saverin because they believe he is giving up his citizenship to avoid paying taxes; they have introduced legislation to carry out their wishes. However, Saverin’s spokesperson tells the Los Angeles Times that his decision to ditch his U.S. citizenship is more about wanting to make a new home in Singapore than avoid taxes. Singapore is a “convenient perch to invest in Asia.” According to the spokesperson, Saverin plans to invest in “Brazilian and global companies that have strong interests in entering the Asian markets.”
Saverin was born in Brazil, earned his U.S. citizenship at age 16, and has been living in Singapore for the past several years.