Eduardo Saverin Renounces U.S. Citizenship Ahead of Mega Facebook IPO
by Brian Solomon
the Facebook co-founder immortalized by his falling out with Mark
Zuckerberg in the movie The Social Network, has renounced
his U.S. citizenship ahead of the companys IPO.
may have made the move for tax reasons, hoping to avoid the highest
rates before Facebook goes public. Although born and raised in Brazil
before moving to the United States in 1992, he now lives abroad
in Singapore. According to a spokeswoman, Saverin actually renounced
his citizenship last September, but the information didnt
become public until Bloomberg
reported that the IRS
released his name on April 30.
not be the first billionaire to renounce citizenship for tax purposes.
John Dorrance III, heir to the Campbells soup fortune, cashed
out of the family business when he sold his 10.5% stake in 1995-1996.
Dorrance renounced his U.S. citizenship and moved to Ireland prior
to the sale. John Fredriksen, oil tanker tycoon, jumped ship out
of Norway in favor of tax-friendly Cyprus. Brazilian Lily Safra,
widow to banker Edmond Safra, ditched Brazil for Monaco.
have left their homeland for non-tax reasons. Bidzina Ivanishvili,
who wants to become prime minister of Georgia, renounced both his
Russian and French citizenships to curry favor with voters. Ted
Arison, deceased father to current billionaires Micky and Shari
Arison, left the U.S. for Israel in 1990.
falling out with Zuckerberg, Saverin has sold more than half his
Facebook stake and has used some of that money to invest in promising
startups. In January 2011, he led an $8 million round of financing
in Qwiki, which works to improve the way people experience information
online. In March 2011, he led a $6.5 million round in Jumio, whose
first product, online payment method Netswipe, uses a webcam as
a verification device.
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© 2012 Forbes