In his first interview, Eduardo Saverin, the co-creator of Facebook who was made the sympathetic victim of Mark Zuckerberg’s alleged greed in the film “The Social Network”, has finally spoken out about what most people are calling his attempt at tax-dodging. Saverin, who has lived in Singapore for more than two years, explained why he chose to renounce his US citizenship. CNN reports:
[Saverin] re-entered the public consciousness recently when, days before Facebook stock was due to hit Wall Street, he renounced his U.S. citizenship in favor of Singapore, where he has lived since 2009.
Many saw it as a dodge — a way to avoid paying U.S. taxes on his share of the company, valued somewhere around $2 billion. He says that’s not the case and noted that, as has been reported, he’s paying his taxes.
“The decision was strictly based on my interest of living and working in Singapore,” he said. “I am obligated and I will pay hundreds of millions of dollars in taxes to the American government. I already paid and I will keep paying whatever taxes I owe based on my time as a U.S. citizen.”
During a CNN interview, Senator Chuck Schumer says that if you believe Saverin about this citizenship thing, he’s got a bridge for sale you might be interested in.
How about Saverin’s feelings about Zuckerberg himself?
“I can only speak well of Mark; I don’t resent him,” Saverin said. “His focus from Day One until today is admirable. He was a visionary and always knew Facebook would only grow if it remained true to its central idea of people presenting themselves truthfully and without pseudonyms…”
What do you think? Are Saverin’s intentions toward citizenship in Singapore pure? Or is he pulling the collective American leg?
By leaving now, he’s “dodging” a capital gains tax on proceeds from the FB IPO. Yes, the tax system is bad; yes, he’s paid his taxes so far — and by the way, with Byzantine tax code, I wonder just how much he’s paid so far. I think he is operating economically, which means paying as little tax as he can. I’d feel better about this citizen of the world if he’d think about giving something back to the US, where he found safe haven and the opportunity that is rare in the world, Singapore notwithstanding, via investments here or… Read more »
I don’t think Saverin is either “pure” or an entrepreneurial hero. But as others have said, it’s his right to live and work wherever he pleases, and to end any obligations to the US in exchange for renouncing the benefits of his citizenship. He’s not “dodging” anything as long as he’s paid all of his legally owed taxes, and has in any case resided in Singapore for a few years. The US is one of very few countries (along with Eritrea) which requires citizens to file taxes regardless of where they live and where the income was generated. This imposes… Read more »
Like he said, he’s paying what he owes, so what’s the big deal? If he’s decided that Singapore is the right place for him then more power to him. I don’t get why people are angry he isn’t paying money to support a country he doesn’t live in.
It does not matter if his intentions are pure or not. What he did is legal – he made his money, he paid his taxes and then decided he did wanted to turn in his US Passport and relinquish his citizenship. The Corporate Congress crybabies are mad because he is taking his money and leaving. These same individuals set it up so corporations are people and allowed businesses to outsource funds and businesses to the detriment of the citizenry and basically made it easy for businesses to make money. He played the game by the rules set up by the… Read more »
Yeah, I agree with jdh. America is a great country, but it’s not the only game in town. There are thousands of American expatriates living and working outside of the US. True, most of them keep their US passports, but this is strictly a matter of personal preference. Saverin has done nothing illegal. If he wants to pay his taxes, take his money and leave, that’s his choice.