Posted on 05/17/2012 2:13:10 PM PDT by SeekAndFind
Facebook co-founder Eduardo Saverin may not be allowed to return to the United States after he renounced his citizenship to save millions in tax.
The 30-year-old, who has a $3.64billion stake in the social networking site, migrated to Singapore ahead of the company's massive stock market floatation tomorrow. The timing of the move has raised eyebrows since Singapore does not have a capital gains tax, which could vastly reduce his bill on any payout.
According to an immigration law, he could be refused re-entry to the U.S. if he is judged to have relocated for the purposes of avoiding taxes.
Section 212 of the law, highlighted by Talking Points Memo, states: 'Any alien who is a former citizen of the United States who officially renounces United States citizenship and who is determined by the Attorney General to have renounced United States citizenship for the purpose of avoiding taxation by the United States is excludable.'
A link was also posted on TPM to a document that someone would need to file with the U.S. State Department's Bureau Of Consulate Affairs when renouncing citizenship. The document says: 'My renunciation/relinquishment may not exempt me from United States income taxation...I understand that if my renunciation of United States citizenship is determined by the United States Attorney General to be motivated by tax avoidance purposes, I will be found excludable from the United States under Immigration and Nationality Act, as amended.'
Earlier this week, it emerged that Saverin had moved to Miami at the age of 13 because he was at risk of kidnapping.
The 30-year-old was on a gangster's list of potential kidnap targets which led his wealthy parents to flee Brazil in a potentially lifesaving move.
But now he has shunned the country in which he made his fortune through social networking site.
(Excerpt) Read more at dailymail.co.uk ...
Here’s the gist of it all:
* Saverin, 30, migrated to Singapore ahead of site’s stock market floatation.
* He Could save on payout as south-east Asian country has no capital gains tax.
* Law states he can be excluded if relocation was deemed for tax avoidance
Seems legit. I agree that the US should be looking at policies that drive people to renounce their citizenship, but the law also seems justified to me and I think it would be relevant in this case.
"Uh huh huh huh...."
Is Chuckie Schumer the one only member of Congress who votes on this? Geesh. Media hype is sickening. This “proposal” will never get anywhere.
I hate facebook even more now.
Hey, isn’t Eduardo hispanic? Would that make a victim of hate then?
Put him on the No Fly list too!
LOL — the left wing freaks THREATENED to leave 11+ years ago and no one seemed worried about their return.
Facebook sucks...
First, there are 33k ways that a guy in this position can stay American and keep the vast majority of his wealth from such a sale....all compliments of the Senators and their fantastic campaign handlers. Eduardo could have easily slide $50 million over to the Obama campaign and gotten six lines added into law to allow him to keep the vast amount of wealth.
Chuck simply is unhappy that no offer was made....so he wants this fantastic piece of legislation to pass. The problem is...it goes nowhere in the House, and I doubt that the Senate could even get around to passing this with fifty votes this year. If I were Eduardo...I’d offer $400k each to ten Democratic senators to guarantee they won’t vote for it.
The injustice here is that some Senators believe all of your wealth....belongs to America (not the country, but the federal government). A bunch of political folks would quickly jump on board and spend the billions in tax if he just paid it....handing it out left and right...like some Lord in a feudal society. Third-world behavior, at best.
Just a couple questions.
1) Who owns Saverin? Is he a citizen of the US, or property of the US? Is he a free man, or a slave that must purchase his freedom?
2) Once he renounces his American citizenship, it is nearly impossible to get it back. He may never own a gun or purchase ammunition in the US, should he return.
3) Every year, we have some number of Americans who move to a foreign country and renounce their citizenship. Instead of looking at the reason “Why” they did this, Libtards instead chose to attack them, as if this person is chattel, and owes them something.
As a US Citizen, you owe the US taxes; however should you renounce the USA - you are no longer a citizen and owe the USA nothing. But, the USA owes you nothing in return.
You are either a slave, property of the USA; or you are a free citizen. What they chose to do to Saverin, they can do to us all. He made his decision, he owes the USA nothing as he has renounced his citizenship. But, worse for him - the USA owes him nothing, and he can never again petition the USA for the rights all citizens enjoy.
Isn't it interesting that that the scumbag progressives (but I repeat myself) immediately see the need for more regulation and taxes instead of a need to re-examine the situation and perhaps make changes. Not only do they lose the tax money on gains but also on any purchases he would have made over the rest of his life.
When it comes to saving a fortune most liberals would renounce their citizenship in a heartbeat. I’d rather stay here and fight. My citizenship is the last thing to go!
Umm no. Look at his skin tone. He is a "White Hispanic" so by definition he is the perp and cannot be a victim.
The Soviet Union didn't build walls to keep people out.
Why is Saverin Banned from entering the USA?
He followed the rules, he followed American laws. He didn’t commit any crime.
Singaporeans aren’t banned. Why is he singled out for special treatment?
I thought this administration was all about fairness?
The way I look at it.....it’s his money, not the governments. If he wants to live in Singapore with more of his money, so be it. The govt gets to much of our money anyway, and I would think he would spend it better.
Facebook is an utter waste of time, a vanity, and seems absolutely pointless to me. I just can’t figure out how it succeeded, much less so how it is worth billions.
But as it has hundreds of millions of users, brought Saverin $ Billions in wealth, and has brought him a girlfriend that looks like that - I guess I am the foolish one!
Edwardo said he considered himself “a citizen of the world” with a straight face in response to the question as to whether he was renouncing US citizenship for tax purposes. I wonder if he would have said that if the UN imposed a 50% citizen of the world capital gains tax
$3.64 billion?
I’d buy a country and re-name it Eduardostan.
Then I’d apply for foreign aid from the USofA.
Lets see, Chuckie...you and Bob Casey would ban him because he knows how to invest in STOCKS (Facebook) instead of INVESTING in what the STOCKBROKER IN CHIEF wanted the TAXPAYERS to invest in.
Now you want to punish his SUCCESS??
We'll punish the FAILURES of the STOCKBROKER In CHIEF in NOVEMBER!!
And Bobby Casey, Jr. you might look for a new job, too.
One cannot help but wonder — What would have happened if Saverin put money into one of those Solar/Green companies that Obama favors?
“who is determined by the Attorney General to have renounced United States citizenship for the purpose of avoiding taxation by the United States is excludable”
That’ll help with revenue. Right up there with giving tax breaks on top of the higher taxes to businesses that move back to the U.S.
Idiots! If you lower taxes, they will come.
“Hey, isn’t Eduardo hispanic? Would that make a victim of hate then?”
Not if he’s a white hispanic, or a white man of hispanic descent, or a black-white-hispanic white guy, or whatever Zimmerman is.
“the law also seems justified to me”
Not to me. We let non-citizens in the country all the time, millions of whom don’t do so legally without anyone caring. Why single out this guy? Because we think his money belongs to us? Well, it doesn’t, you greedy bastards.
jeez...he would be looked on as a nice guy to the LIBS!! Not as an EVIL CAPITALIST!
tax avoidance is NOT tax evasion!!! the former is legal where the latter is not...
Schumer is an ass.
The guy won’t care if he ever comes here.
His life is Disneyland from now on, no matter where he is.
Shummer's beneath despicable.
It is next-to-near impossible to renounce one’s citizenship of this country.
Don’t believe me?
Ask Lee Harvey Oswald or Angela Davis. Once you have citizenship, the state department takes citizenship very seriously.
Is he behind on his taxes?
As far as has been reported, he has paid his taxes on all income earned while an American citizen. He just chose to relieve himself of that obligation BEFORE he hit his big payday - so he owes nothing to the US government for any money he makes tomorrow on the Facebook IPO.
I would be more impressed with schumer’s battle for US revenue if his party’s Treasury Secretary choice was a person who bothered to properly file and pay his taxes he actually owes — not might owe.
You've stated the reason yourself in your next sentence:
But as it has hundreds of millions of users,...
Hundreds of millions of people that don't find it a waste of time and a pointless vanity are what makes it worth those billions.
I'll bet he's paid more US taxes in the last five years than I will in a hundred lifetimes.
Over and over again the courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands: Taxes are enforced exactions, not voluntary contributions.
To demand more in the name of morals is mere cant.
I agree with Tyler Durden of Zero Hedge when he said thusly:
It’s interesting that, rather than change their ways of doing business and introducing legislation that provides incentives for productive people to come here and stay here, Congress maintains policies that chase people away, and introduce new ones to lock the door after they’re gone.
The lesson here (especially for natural-born citizens) is this: simply by accident of birth, you are born with a lifelong obligation that you never signed up for to finance the corrupt misdealings of the political class. And if you choose to abandon this obligation, they will bar you from ever entering your homeland again.
Regardless of what the propaganda says, this is not how a free society treats people. It might look and feel like a representative democracy on the surface, but under the hood it’s the modern day equivalent of feudal serfdom.
The land of the free has certainly fallen a long way.
RE: It is next-to-near impossible to renounce one’s citizenship of this country.
______________________
Many people seem to have forgotten the Republican Debates.
There was a segment about border fences to keep illegals out. Ron Paul was laughed at when he said he was more concerned with border fences being used to keep us IN (i.e., to keep us from leaving).
Now I’m beginning to understand what he meant and I’m not laughing anymore.
Americans have a long and colorful history of avoiding taxes. Look up the Gaspee Affair as an example.
Paying your fair share of taxes is one thing. Deductions and loopholes were put there deliberately and we can deliberately use them to our advantage. Are you a criminal for taking a tax deduction?
What I don’t like is giving the tax man MORE power over your life. Isn’t there a new law working its way through Congress that would prevent you from getting a passport if you owe back taxes? Tyrants wear many hats.
Schumer is grandstanding, but it means nothing.
This has already been the law since 1996. Having such a spiteful law is just more proof that we have the worst tax system in the world. If we had the best, we wouldn’t have to attempt to intimidate and threaten people into staying. Laws like this make it look like the USA is no better than the Soviet Union or Red China — treating people like they are property of the state.
Hey, isn’t Eduardo hispanic? Would that make a victim of hate then?
No he’s not! He’s Brazilian. (Portuguese Latin Romance Language)
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