Facebook co-founder Eduardo Saverin has renounced his US citizenship, according to an Internal Revenue Service report.
The announcement, days before the company’s initial public offering, is somewhat fishy.
According to Reuters, his name appeared on an IRS notice that named people “who have chosen to expatriate.”
Facebook expects to make $10.6 billion in an IPO that is expected to value the company at as much as $96 billion.
If Saverin stayed in the Land of the Free he could be hit by a huge capital gains tax bill.
He has sold shedloads of his putative Facebook shares so that he does not appear in IPO filing documents. He is thought to have loads of putative shares, though.
Saverin has moved to Singapore, an Asian city state that has no capital gains tax. If he stayed in the US he would have faced a minimum 15 percent rate for long-term capital gains.
He is pretty multinational. Saverin was born in Brazil, and was educated in the United States at Harvard.
This whole US citizenship thing has become amusing in the Land of the Free lately. Former Republican Presidential candidate Michele Bachmann revealed she had become a dual US-Swiss citizen, then quickly tried to return her new Swiss passport.
It is not as easy as you think to give up US citizenship. It is a bit like one of those cults that does not let you go that easily. You have to signed oath an oath before a US diplomatic official and they will never let you back. This means you have to suffer the same amount of abuse from Immigration officials when you enter the country as the rest of humanity. As it is the only people that the US wants in their country are UK criminals.
On the other hand, you can easily give up your UK citizenship. At a price.