Facebook co-founder Eduardo Saverin, who made billions off the world’s most popular social network, stands to rake in about $3.84 billion from his 4 percent share of Facebook, Bloomberg reported.
Saverin will have to pay millions in taxes on the money he makes -- so he chose instead to renounce his U.S. citizenship.
The Brazilian born Internet entrepreneur’s name turned up on an April 30 list published quarterly by the Internal Revenue Service of people who have chose to expatriate. Tom Goodman, a spokesman for Saverin, told Bloomberg the move was “practical.”
“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” said Tom Goodman, a spokesman for Saverin, in an e-mailed statement.
People seem to be getting bent out of shape over Eduardo Saverin this week even though he's been living in Singapore for sometime. I dont think people realise until he has a liquidity event (eg sells the shares) he doesnt have to pay taxes anyway (eg Steve Jobs never did......and then he died).
The bigger issue for Eduardo is the "Heart Taxation Act" which basically means he cant sell them for 10 years or he has to pay an "mark to market" percentage when expatriating, of course he has far smarter accountants working for him so what i expect he will do is borrow on margin against a a percentage of his shares (eg 50% of their market value) and put these in trust for 10 years until they can be sold on the market.
If you haven't heard of the Heart Taxation act you should cllick here -> http://blog.collins.net.pr/2008/10/heart-taxation-act-drives-away-green.html