Facebook Co-Founder Gives Up US Citizenship to Avoid Taxes

From Fox News

He was living the American Dream — and then he abandoned America.

Facebook co-founder Eduardo Saverin, who made billions off the world’s most popular social network, stands to rake in about $3.84 billion from his 4 percent share of Facebook, Bloomberg reported.

Saverin will have to pay millions in taxes on the money he makes — so he chose instead to renounce his U.S. citizenship.

The Brazilian born Internet entrepreneur’s name turned up on an April 30 list published quarterly by the Internal Revenue Service of people who have chose to expatriate. Tom Goodman, a spokesman for Saverin, told Bloomberg the move was “practical.”

“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.

‘Eduardo recently found it more practical to become a resident of Singapore.’

– Tom Goodman, a spokesman for Saverin

America citizens pay several taxes, including taxes on salary and investments. Saverin would be hit with about $600 million in capital gains taxes whenever he sold the Facebook shares (or “realized the income,” in financial speak).

Singapore has no capital gains taxes.

Saverin was chief financial officer and business manager at Facebook, until he was forced out of the company — a dramatic tale described in the fictional 2010 film “The Social Network,” directed by David Fincher.

He settled out of court with co-founder Mark Zuckerberg for an undisclosed amount of money, but still owns shares in the company.

A Facebook spokesman did not immediately respond to requests for more information.

But even if he’s no longer…(read more)

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