Feeds

Facebook co-founder renounces US citizenship pre-IPO

Smart tax move for Eduardo Saverin

  • alert
  • submit to reddit

Top three mobile application threats

Eduardo Saverin, a co-founder of Facebook, has abandoned his American citizenship ahead of the social networking company's possibly oversubscribed IPO in May.

“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” his spokesman Tom Goodman told Bloomberg.

Brazilian-born Saverin made the initial investment of $1,000 in Facebook when he and Zuckerberg were students together at Harvard, in exchange for 34 per cent of the company. Saverin claimed his ownership holding was diluted down to a fraction of a per cent at one stage and instituted legal action, as well as putting his side of the story in a best-selling book on the topic, the film version of which won three Oscars.

The two subsequently reached a settlement and Saverin's not talking any more, but part of the deal was to return his name as co-founder on the corporate masthead and he also bagged a suspected five per cent stake in the company, which would be worth around $3bn if the IPO is successful.

Singapore has no capital gains tax, so renouncing his citizenship ahead of the IPO is a very smart idea, according to Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan’s law school. "Once it’s public you can’t fool around with the value." He'll still get a hefty bill from the IRS, but it shouldn't be too hard to swallow.

The Wall Street Journal reports that Saverin moved to Singapore in 2009 and has become the darling of the celebrity nightclub circuit, spending his evenings drinking Cristal Champagne and Belvedere vodka at the city's most fashionable hotspots in the company of models and local celebrities. His spokesman said Singapore was a "home base" for monitoring his investments in Asia and Brazil. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.