Mark Zuckerberg can skip sending an invite to Eduardo Saverin for any IPO parties.
By relinquishing his American citizenship, the Facebook co-founder likely won’t be allowed back into the United States after the IRS and State Department look into his case, according to legal experts.
“Anyone who relinquishes their citizenship always has a non-tax related reason why they’re giving (it) up,” Kehrela Hodkinson, a lawyer at the British firm Law Hodkinson Law Group, told the Daily News. “He would likely have a reason like, ‘I’m living in Singapore.’”
The only penalty Saverin is likely to face is that he will be “inadmissable” to the United States.
The problem for Saverin, Hodkinson said, is that the U.S. government has the leeway to determine if his decision is tax-based — not whatever other reason he may offer.
While that may be rare, with Saverin’s decision making international headlines, it is more than likely in his case, Hodkinson said.
“I think they’re going to be under tremendous scrutiny,” she said, which could force the government to make an example of Saverin.
Sen. Chuck Schumer (D-NY) and Bob Casey (D-PA) also are peeved enough about the publicized loss of tax dollars that they announced proposed legislation on Thursday aimed at stopping people like Saverin from returning to the U.S. regardless of their reason for leaving.
“The senators called Saverin’s move an outrage and described a plan to re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country,” Schumer’s office said in a press release.
“Their plan would also bar individuals like Saverin from reentering the country so long as they continued to avoid paying their taxes in full,” his office said.
Despite the outcry, there may be multiple advantages for the Brazilian-born Saverin — even if it means he can’t visit his family, who reside in the United States.
According to reports, the young millionaire would net at least $67 million without his American ties.
Singapore, where Saverin reportedly spends most of his time now, has considerably lower taxes. He also, experts said, can escape IRS scrutiny, tax on his estates and investments, and an overall increasingly exhausting tax process for overseas citizens.
Join the official YWN WhatsApp status
5 Responses
Conservatives think: “Hey if people are leaving because our tax is too high, let’s lower them so as not to chase people away!”. But Democrats think: “Let’s make all kinds of laws preventing individuals and companies from leaving. Let’s just say that whereever they go they’re still citizens of the US.”
If you no longer live here you still have to pay taxes!–
Ginious. I wonder why Santorum didn’t think of that…
It’s outrageous that the USA presumes to tax its citizens on all the income they make anywhere in the world, income that has nothing to do with the USA. No other country does that. And when people say “OK, so I won’t be a citizen”, these greedy pigs think they have a right to stop them! What gives you the right, Chuckie? What right do you have to a penny of Saverin’s money? When Russia imposed exit taxes on people with degrees, to recoup the expense of their education, you were out there protesting; how is what you’re doing any different?
Any time Schumer is peeved, it is is good thing. I saw his press conference on his bill. We have a cat and mouse game in this country. Schumer is peeved because someone found a way around giving taxes. Welcome to entrepreneurs Schumer! Embrace them, don’t chase them! The more regulation and taxes, the more entrepreneurs find ways to avoid them. Similar to rent control in NYC 🙂 Since the 80s, any developer build rental units? Of course not. No money in it. Any owners fix up their rental properties? Of course not, no intensive. The more you chase the brains, the more brains get away.
Facebook is a global company. The US should be wary of economic policies designed to punish companies that are based in the US, when they can just as easily move elsewhere.
The next thing you know, US will start closing its doors to people leaving. This country is turning more and more into Russia, thanks to the utter jerk in the White House and his thugs.