Facebook co-founder Eduardo Saverin has renounced his USA citizenship as part of a financial strategy just before Facebook goes public. He stands to make roughly $3.84 Billion in the IPO move and will get himself a Whopping tax break by denouncing US citizenship.
Well that’s some slick timing. Eduardo Saverin, who is best known for co-founding Facebook with Mark Zuckerberg back in their college days at Harvard, has given up his United States citizenship.
His name appeared on a list published on April 30 by the United States Office of the Federal Register, which issues a quarterly list of people who have given up their U.S. citizenship. The news was first picked up by Bloomberg earlier today.
The switch will almost certainly decrease the number of American taxes he owes on the $3.84 billion or so he is reportedly in line to make once Facebook goes public, which is widely expected to happen next week. As Bloomberg reported: “Renouncing your citizenship well in advance of an IPO is ‘a very smart idea’ from a tax standpoint, said [University of Michigan international tax law professor Reuven] Avi-Yonah.”
Eduardo was born in Brazil and has been a USA citizen since age 16.
To be sure, the “99%” won’t be Occupying this 1%-er’s door, demanding they “Pay their fair share,” as Saverin helped give them their beloved Facebook, which they cannot live without, just as they cannot live without their ipods and ipads made by Apple, a company they worship which manufactures in China every single product they make. But that won’t stop our OWSers from adoring Facebook and Apple, will it now?
I would venture to say that Facebook won’t suffer from any loss of USA users at all. They know their captive audience well.
There’s no irony here at all, is there?
As we continue working on “increasing taxes for the 1%” who look just like Eduardo Saverin — we will quickly see how well they adapt to their “options” just like Eduardo just did.
What have we learned from this story? Take your time. I’ll wait.