About a week ago, I wrote an article about how Facebook co-founder Eduardo Saverin renounced his U.S. citizenship. Saverin was born in Brazil and currently lives in Singapore. Saverin had renounced his citizenship in September 2011, but the IRS announced it this month. When Facebook has an IPO, Saverin’s net worth would turn into roughly $3-$4 billion. Singapore does not levy capital gains taxes so by renouncing his citizenship, Saverin would be able to dodge $67 million in taxes. Sen. Chuck Schumer, D-N.Y. and Bob Casey D-Pa. is not happy with this move so they have unveiled the Ex-PATRIOT Act.
Ex-PATRIOT stands for ?Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy.? This Act would re-impose taxes on expatriates even after they leave the U.S. and take up residence in another country. It would also ban people like Saverin from reentering the U.S. again.
Saverin said that he first filed to give up American citizenship in January 2011. It became official in September and the government published the news at the end of April as part of a routine filing. ?I?m not a tax expert,? said Saverin in an interview with The New York Times. ?We complied with all the known laws. There was an exit tax.?
?This had nothing to do with taxes,? he added. ?I was born in Brazil, I was an American citizen for about 10 years. I thought of myself as a global citizen.?