Thursday, May 17, 2012

Facebook Co-Founder Unfriends United States of America

Facebook Co-Founder Unfriends United States

Eduardo Saverin, one of the four Facebook's co-founders, has unfriended America, renounced his U.S. citizenship, according to the IRS' list of people whow chose to expatriate.

This move by Saverin, comes just before the Facebook is expected to launch an IPO of its stock. It is widely speculated that Saverin is looking to avoid paying some taxes, mind you, in millions, on 4% stake he owns. Saverins stake is also an estimate as no one seems to know the his actual facebook shares. According to "The Facebook Effect," he owned as much as 5% but must have sold some of those shares since then. Facebook's pre-IPO regulatory filings did not include Saverin among those who owned more than 5% of stock.
But Saverin states that the renounce of US citizenship is to do with his business and need to be in Asia, Singapore, namely where he now lives. Yeah, Right. 4% X some Billion X 0.45 (the tax average Facebook employee will pay) comes to about $some Million and unlike USA, Singapore has no capital gains tax. Again, it is much smaller than what Mark Zuckerberg will have to pay. His tax is assumed to be more than a Billion.

Saverin, who is originally from Brazil in 1992, moved to USA in 1998, founded Facebook with Mark Zuckerberg in 2004 while the two were students at Harvard University. Saverin left the company after his conflict with Zuckerberg.


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