• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Tax-Arbitrage Of The Year - Facebook Founder Renounces US Citizenship

Tyler Durden's picture




 

We can only guess at his reasons. Perhaps it is the cost of real estate in Palo Alto, the price of Starbucks in Silicon Valley, or the lack of Bugatti dealerships but Eduardo Saverin - co-founder of Facebook - just renounced his US citizenship. Via Bloomberg,

  • FACEBOOK CO-FOUNDER SAVERIN GIVES UP U.S. CITIZENSHIP PRE-IPO
  • FACEBOOK CO-FOUNDER SAVERIN PLANS TO INVEST IN BRAZIL COMPANIES

Or maybe the always pioneering entrepreneurs from Facebook just gave us a preview of US tax policy, or rather the popular response to it, in 2013. Like!

 

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 05/11/2012 - 12:20 | 2417678 arm50
arm50's picture

Hmm, taxes make people leave? Weird.

 

Fri, 05/11/2012 - 12:23 | 2417689 Rahm
Rahm's picture

Fucking genius!  On to Switzerland (Citizenship, while banking in Cayman, and living in U.S. - hence he can still drive his Tesla to FB campus)

Fri, 05/11/2012 - 12:34 | 2417729 Oh regional Indian
Oh regional Indian's picture

That, for the un-initiated, is a complex web of post WWII Nazi Money going home to roost, Jewish to boot, how strange.

Rat, sinking ship? And way back then, who was Enemy and who was friend?

Co-Flounder is more like it.

Saverin is Savourin his profeets...

ori

sifting-the-sands-of

Fri, 05/11/2012 - 12:39 | 2417767 Pladizow
Pladizow's picture

Doesnt take a visionary to know what America's future is!

Three Flags Bitchez!

Fri, 05/11/2012 - 12:51 | 2417791 Xkwisetly Paneful
Xkwisetly Paneful's picture

Actually it seems like it does.

US educated, US created, US technology, cashing out in the US equity markets.

But thanks for playing.

 

 

 

 

Fri, 05/11/2012 - 13:19 | 2417923 Pladizow
Pladizow's picture

Citizenship: Brazil

Resident: Sigapore

Money: Everywhere!

Fri, 05/11/2012 - 13:27 | 2417940 FlyoverCountryS...
FlyoverCountrySchmuck's picture

If we just raise taxes on the EVIL RICH, and raise the Capital Gains tax, people won't leave anymore!

HOPEY CHANGEY, SUCKAZ!

Fri, 05/11/2012 - 16:06 | 2418491 matt_chart
matt_chart's picture

I bought TWWI on wednesday and made 100% profit in about a hour. Stock Legends has another big alert coming this weekend for monday. http://stocklegends.com

Fri, 05/11/2012 - 16:39 | 2418594 GMadScientist
GMadScientist's picture

Wow...two lattes.

Fri, 05/11/2012 - 17:45 | 2418728 The Big Ching-aso
The Big Ching-aso's picture

 

 

He's renouncing his U.S. citizenship after after our FB citizens and markets helped him make bazillions?

Well I'll be Facefucked.

Fri, 05/11/2012 - 12:50 | 2417798 tgatliff
tgatliff's picture

Yes.. But the question is whether the US government will accept his renouncement... My guess is no considering the size of potential tax income they will be extracting from him shortly....

Remember, you might be a US citizen, but you are first a slave to the ever wonderful US Treasury Department... And yes, they will find you... Ask anyone who gave money to the swiss...

Fri, 05/11/2012 - 13:26 | 2417937 Dre4dwolf
Dre4dwolf's picture

It is true that there are recorded cases of the govt denying applications to renounce citizenship (as odd as that might sound).

The system is self-destructing, they are attempting to keep as many slaves as possible from fleeing to safety (because after-all they need someone to fleece for the next banker bailout that we are slightly over-due for.).

 

Just like they did in 1933 when they stole everyones gold at 20$ an oz and then pegged the price post theft to 35$ an Oz, anyone who managed to renounce citizenship avoid taxes, and save their money (in gold) would of become potentially very wealthy by simply combating the government-bank sponsored fraud of the time.

 

1933 = Banker Bailout

1970s ~ 1980s = Banker Bailout

2007~2013 = Banker Bailout

 

Every-time a bubble popls (usually a credit bubble) the govt steps in and bails them out by stealing the wealth, purchasing power and sometimes even the DEPOSITS of the governments  and banks creditors (you and me).

 

When you deposit cash in your bank, its not even yours anymore, go read bank of Americas terms and conditions for opening an account, it puts you in the position of debtor to the bank even though a deposit is a loan from you to the bank.

They can actually deny giving you your money in those terms and conditions that you didn't read.

It's all UCC based law, go read the side of your freaking deposit slips.... you know the fine micro print.

Fri, 05/11/2012 - 14:05 | 2418074 earleflorida
earleflorida's picture

1933 = Banker Bailout

Nicht !!!

Fri, 05/11/2012 - 16:20 | 2418538 flying dutchmen
flying dutchmen's picture

i doubt they accept it without a huge tax hit.  Facebook could only have been create in the USA -- so he can go fuck himself.   PAY the taxes and then fuck off....

Fri, 05/11/2012 - 17:44 | 2418786 GoldRulesPaperDrools
GoldRulesPaperDrools's picture

Remember, you might be a US citizen, but you are first a slave to the ever wonderful US Treasury Department... And yes, they will find you... Ask anyone who gave money to the swiss...

 

WRONG ... ever heard of Marc Rich?  Left the country and never paid his taxes ... oh, but the wife made a very conveniently timely donation to the Bill Clinton library.  WINNING!

Fri, 05/11/2012 - 21:05 | 2419105 baltar
baltar's picture

They already accepted his renounciation, he is on the list just published April 30th.

 

https://www.federalregister.gov/articles/2012/04/30/2012-10274/quarterly...

Fri, 05/11/2012 - 12:33 | 2417749 pkea
pkea's picture

isn't he still a brazilan citizen?

Fri, 05/11/2012 - 13:14 | 2417902 godgunsandgold
godgunsandgold's picture

Next on his "to do" list........

Fri, 05/11/2012 - 15:46 | 2418386 caconhma
caconhma's picture

Eduardo Saverin was born in São Paulo, Brazil, to a wealthy Jewish Brazilian family, and was raised in Miami, Florida. 

While an undergraduate at Harvard, Saverin took advantage of Brazil's lax insider trading regulations and made $300,000 via strategic investments in the oil industry.

He also renounced his U.S. Citizenship in September 2011.

The Brazilian-born resident of Singapore. It may help him cut the tax bill stemming from his Facebook stake, and avoid capital gains taxes on his future investments. Singapore doesn’t have a capital gains tax.


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.

Fri, 05/11/2012 - 16:07 | 2418496 Augustus
Augustus's picture

There should have been enough shares traded on Second Market to give a good starting point.  given the size of his holdings, a full sale would be at a lower price.

Does he even have a secretary that pays taxes?

Fri, 05/11/2012 - 16:40 | 2418605 GMadScientist
GMadScientist's picture

He's Paris Hilton with a limp dick.

 

Fri, 05/11/2012 - 16:32 | 2418563 Cole Younger
Cole Younger's picture

Likely, many latin american conutries have dual citizenship. The U.S. can't stop him..If they try, FB servers can be moved out and the company can incorporate elseware...Bad for California if that occurs...They are banking on FB IPO to fix their budget...

Fri, 05/11/2012 - 14:13 | 2418092 Stoploss
Stoploss's picture

Hope he doesn't have a Fisker, they tend to burn the house down. The Flaming Fisker!!  LOL!!

Fri, 05/11/2012 - 22:00 | 2419171 Buck Johnson
Buck Johnson's picture

Maybe he knows whats coming to the US this summer.

Fri, 05/11/2012 - 12:22 | 2417690 whatsinaname
whatsinaname's picture

Maybe he wants to settle down with his memes in Monaco.

Hear he is a big jet setter these days ..

Fri, 05/11/2012 - 12:31 | 2417732 Piranhanoia
Piranhanoia's picture

perhaps indictments make them leave.  Talk about your basic prepper.

Fri, 05/11/2012 - 12:31 | 2417735 alangreedspank
alangreedspank's picture

Yeah, odd right ? It's like this experiment people have to witness every time because the previous obvious conclusions never seem to stick.

Fri, 05/11/2012 - 12:35 | 2417751 Gully Foyle
Gully Foyle's picture

So what fucking nation is he a citizen of?

And why wasn't that in mentioned?

 

 

Fri, 05/11/2012 - 12:54 | 2417825 Gully Foyle
Gully Foyle's picture

Roland99

Thanks. I found this following the Google

I did not know BIGOV posted a quarterly list of expatriates.

https://www.federalregister.gov/articles/2012/04/30/2012-10274/quarterly...

Quarterly Publication of Individuals, Who Have Chosen To Expatriate

This notice is provided in accordance with IRC section 6039G of the Health Insurance Portability and Accountability Act (HIPPA) of 1996, as amended. This listing contains the name of each individual losing United States citizenship (within the meaning of section 877(a) or 877A) with respect to whom the Secretary received information during the quarter ending March 31, 2012. For purposes of this listing, long-term residents, as defined in section 877(e)(2), are treated as if they were citizens of the United States who lost citizenship.

Fri, 05/11/2012 - 13:03 | 2417858 cheesewizz
cheesewizz's picture

Brazil...Now thats somewere I always wanted to tan, I mean go

 

Help me !!! I cant stop this shit

 

Fri, 05/11/2012 - 13:08 | 2417877 Gully Foyle
Gully Foyle's picture

cheesewizz

At least your not a Brazil nut.

Fri, 05/11/2012 - 12:38 | 2417769 slaughterer
slaughterer's picture

Giving up one's citizenship is the only way to get an offshore account nowadays with Fatca legislation kicking in in 2013.

Fri, 05/11/2012 - 13:24 | 2417929 ToNYC
ToNYC's picture

Kenneth Dart of Dart Industries tried that to leave him free of styrofoam-based lawsuits that will dwarf asbestos claims. He bollixed up a bunch of South American debt settlements with the major banks like Citicorp. A real prince of crapitalism who'd just as soon skip the table before the bill came due.

They'll let Edouardo free of taxes for a very stiff price just for the example. Dumb move, smart guy.

 

Fri, 05/11/2012 - 14:07 | 2418077 Dr. No
Dr. No's picture

"Off Shore"...its not just for companies anymore.

Fri, 05/11/2012 - 12:21 | 2417685 trembo slice
trembo slice's picture

If I had millions of dollars I'd do the same.  Especially if I was about to get millions of dollars.

Fri, 05/11/2012 - 12:26 | 2417706 mckee
mckee's picture

Given the binary nature of our probably outcomes 1) The easiest way to ensure you'll never be a millionaire is to stay here. or 2) We will all be millionaires.... when a loaf of bread cost $500,000.

Fri, 05/11/2012 - 12:27 | 2417717 mayhem_korner
mayhem_korner's picture

 

 

Is it Thai Stick Friday for you or are you trying to use the keyboard with mittens on?

Fri, 05/11/2012 - 14:43 | 2418164 mckee
mckee's picture

Both... don't want the smell on my hands giving me away.

Fri, 05/11/2012 - 12:35 | 2417755 Gully Foyle
Gully Foyle's picture

mckee

"The easiest way to ensure you'll never be a millionaire is to stay here"

Yes, I'm quite certain that Spain has a blooming millionaire class.

 

Fri, 05/11/2012 - 13:20 | 2417921 Belarusian Bull
Belarusian Bull's picture

Here in Belarus we are millionaires for a long time. Bread costs 5 000 - 10 000 of local currency, 1 USD = 8 000.

Nothing to fear, you'll get used to it :)

Fri, 05/11/2012 - 23:14 | 2419316 AGuy
AGuy's picture

I am not worried about becoming a millionare, but I am terrified of becoming a multi-quadrillionaire!

I am not sure my back will hold out hauling half a ton of FRNs to buy a loaf bread.

It would be interesting to see the State of the Union speech when hyper-inflation hits:

Good evening Americans and members of Congress. My adminstration has succesfully turned each and everyone of you into multimillionaires in just a few short years. The United States now has more billionaires and Trillionaires then the rest of the World combined! Never in American history has any President been able to raise incomes so fast as mine has! In today's ecomony everyone has a job even if they don't want a job. We managed to employ  the eldery, the disabled, and even the terminally ill! What an exciting time it is to be an American! My adminstration has also done something that never been done before, Send every illegal alien home without the cost of a single tax dollars to enforce immigration policy! We also managed to finally make American Energy independant! Today we are also a top energy exporter. Our Energy policy has managed to permanently remove over 100 million cars from American roads. Our roads are completely congestion free!

Putting aside all this good news, I have something serious to discuss with the American People tonight. As you're already aware, some of our former states have rebelled against our great Union and have set up terriorist networks that threaten our liberties and our way of life. I have asked Congress to deliver an article of war against these rebel states. No longer shall Texans and Alaskans threaten our great nation. We will end their reign and take back what is rightfully ours! I've also requested new Border security Bill designed to secure our borders to prevent American Wealth from leaving our nation. We cannot permit tax dodgers from fleeing our nation. We also cannot permit illegal contraband (Coffee, Sugar, Toilpaper, beef) from being transferred with out the luxary tax stamp. Its unfair to law abiding citizens and it robs wealth from our public treasury. In order to fund these new bills I have requested that the VAT tax be raised a small portion to a new effective rate of 84%. This new tax rate is fair and just for everyone. Some of my fellow members in Congress and the Senate have argued for new tax rate of 90%. That is simply too much of a burden and I will veto it. Its 84 or the veto! I understand the American people and refuse to take action that will cause unneccessary misery. Good night and God bless us All!

 

 

 

 

 

 

 

 

Fri, 05/11/2012 - 12:22 | 2417686 junkyardjack
junkyardjack's picture

So now he's a terrorist...

Fri, 05/11/2012 - 12:36 | 2417761 Gully Foyle
Gully Foyle's picture

junkyardjack

Has someone checked his underwear?

Fri, 05/11/2012 - 13:22 | 2417928 godgunsandgold
godgunsandgold's picture

I'm sure some TSA freak will be hot for him.....

Fri, 05/11/2012 - 12:22 | 2417688 HANKREARDON
HANKREARDON's picture

Do you have to be a citizen anywhere?  Now that's globalization.

 

Where to?

Fri, 05/11/2012 - 12:23 | 2417696 HANKREARDON
HANKREARDON's picture

Singapore

Fri, 05/11/2012 - 13:13 | 2417897 anarchitect
anarchitect's picture

Depends on his age. Mandatory military service if too young, I believe.

Fri, 05/11/2012 - 13:02 | 2417764 Gully Foyle
Gully Foyle's picture

HANKREARDON

http://www.blueseed.co/quick-facts.html

Who is this for? - The world's best entrepreneurs and visionaries
The boldest, brightest, and most talented tech entrepreneurs from around the world. Plus the individuals and organizations that support and invest in them.
Where will it be? - Right near Silicon Valley
On a ship anchored half an hour (12 miles) from Silicon Valley, in international waters outside the jurisdiction of the United States.
What does it cost? - Around $1,600 USD/person/month
We'll charge a combination of rent and equity to accommodate the stage of your startup. The price per person will include living and office space, and will range from $1200 for a shared cabin to $3000 for a top-tier single accommodation cabin.
Why should it be done? - Because innovation is awesome
The world's best entrepreneurs should be able to gather and collaborate in one place, and not be limited by antiquated work visa restrictions.
How can I get aboard? - Do something that matters, and be awesome
Get referred to us through a reputable angel, venture capital firm, entrepreneurs network, or trusted contact. Or surprise us.
Can I legally work? - On Blueseed, yes.
You can legally earn an income working on your startup while on the Blueseed vessel regardless of your nationality, but you can't legally earn a paycheck while visiting the mainland, unless you have a US work visa or are a US permanent resident.
Can I travel to the mainland? - Yes
You can travel to the mainland using business/tourist visas (B1/B2), for up to 180 days/year (these are significantly easier to obtain than work-visas). US residents can travel to Blueseed at any time.
What happens when I succeed and outgrow Blueseed? - We help you move to the mainland.
Silicon Valley is the best place in the world to scale a company, and once you're large enough there are legal channels available to move into Silicon Valley proper. We will provide you with the resources and contacts you need to make the transition.
When are you launching? - In about two years
We plan to launch between Q3 2013 and Q1 2014.
My organization supports startups, how do I join the project? - Contact us
We're primarily looking for incubators, support networks, and individuals or organizations that make our environment more awesome while solving a startup's problems.
( Really who would downvote BLUESEED? It's like a 21st century Ayn Rand town, but on a ship at sea. Maybe like Ayn Rand anger fucked Jules Verne and came up with a Captain Nemo Galt.Or Fucking HAGBARD CELINE!)
Fri, 05/11/2012 - 22:05 | 2419180 Dr. Sandi
Dr. Sandi's picture

Wait a minute here:

Where will it be? - Right near Silicon Valley
On a ship anchored half an hour (12 miles) from Silicon Valley, in international waters outside the jurisdiction of the United States.

 

Last time I was in the neighborhood, the Santa Cruz Mountains were still quite well established between Silicon Valley and the Pacific Ocean. Just a quick and easy 45 minute drive on the winding mountain freeway to Santa Cruz or Monterey and you're on the water.

Of course, the 12 mile limit hasn't really existed since sometime around the Cuban Missile Crisis. Most nations follow the U.S. lead of imposing a 200 mile limit around their land mass.

On the other hand, I wish them all the best with this. Stupid people should be separated from their excess money as quickly as possible.

Do NOT follow this link or you will be banned from the site!