When we learned that Facebook cofounder Eduardo Saverin renounced his US citizenship, we assumed it might have something to do with avoiding US taxes.
Turns out we were on to something.
Taking a low estimate of Saverin’s stake – valuing it at $3 billion – Bloomberg’s Jesse Drucker concludes that Saverin will save at least $67 million giving up on the red, white, and blue.
Bloomberg calculated the $67 million figure by applying the 15 per cent U.S. capital gains rate to the approximate $448 million spread between the two values. Bloomberg’s methodology was reviewed by Robert Willens, an independent tax adviser based in New York…
…His savings may be even greater because Saverin’s tax advisers could argue that the value of his stake in September was less than the $2.44 billion used in Bloomberg’s calculation because selling such a large amount of stock at the then-market price wasn’t possible.
Saverin’s spokesperson insists that the tax savings are not his motivation.
“The calculations and assumptions are not only erroneous, they also further perpetuate the false impression that tax was the reason behind Eduardo’s decision,” this spokesperson told Bloomberg.
“His motive had nothing to do with tax and everything to do with his desire to live and work in Singapore.”