Facebook co-founder gives up US citizenship

**Lalakokofefe** · May 11, 2012 , 08:36 PM

Facebook co-founder Saverin gives up US citizenship

Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.

Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin's stake is about 4 percent, according to the website Who Owns Facebook. At the high end of the IPO valuation, that would be worth about $3.84 billion. His holdings aren't listed in Facebook's regulatory filings.

Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.

Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin's stake is about 4 percent, according to the website Who Owns Facebook. At the high end of the IPO valuation, that would be worth about $3.84 billion. His holdings aren't listed in Facebook's regulatory filings.

Exit Tax
Saverin won't escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from their stock holdings, even if they don't sell the shares, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan's law school. For tax purposes, the IRS treats the stock as if it has been sold.

Renouncing your citizenship well in advance of an IPO is "a very smart idea," from a tax standpoint, said Avi-Yonah. "Once it's public you can't fool around with the value."

Saverin's estimated gain, and subsequent tax bill, would be based on an appraisal by his tax advisors. They could have valued his Facebook stake at less than it will be worth once shares trade publicly, reducing his liability. For tax purposes, Saverin can argue that the value of his stake should be discounted because of the potential difficulty of selling the shares while the company remains private.

Continued here

I no blame de bobo jare....

LKF

**Austin** · May 21, 2012 , 12:24 PM

Good the guy is back to being Nigerian; and some of you guys say Jonathan is not doing anything

**Bill Carson** · May 21, 2012 , 08:06 PM

That was a wrong move, Americans don't like unpatriotic people and there are consequences for his kind of behaviour. Uncle Sam will deal with him accordingly. I'll not like to be on an Immigration queue into USA behind him, because they will delay him for several hours while they conduct routine terrorist check on him.
The FaceBook IPO stuff will turn out to be the biggest hype ever and as usual decent folks (pensions & savings) will be screwed thanks to institutional fund managers that bought up future worthless shares.

**Lalakokofefe** · May 21, 2012 , 08:35 PM

Originally Posted by Bill Carson

That was a wrong move, Americans don't like unpatriotic people and there are consequences for his kind of behaviour. Uncle Sam will deal with him accordingly. I'll not like to be on an Immigration queue into USA behind him, because they will delay him for several hours while they conduct routine terrorist check on him.

You are correct. They are trying to introduce a law that will fine him heavily and ban him permanently from ever stepping foot in the US ever again.

Details here....

LKF

**EezeeBee** · May 26, 2012 , 04:31 AM

Originally Posted by Lalakokofefe

You are correct. They are trying to introduce a law that will fine him heavily and ban him permanently from ever stepping foot in the US ever again.

Details here....

LKF

Because they presume that he WANTS to set foot in America again. Maybe, in Obugi's words, he's "Got His" and is done with the USA. Let them waste legislative time making a spiteful law against one person when they should be finding ways to create jobs for many! Are they allowed to make a law that has retroactive applications i.e. a law now that can fine him for a decision he's already taken within the ambit of current laws/regulations? That would be novel and interesting in the ever evolving America.