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Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO

Discussion in 'The Okie Corral' started by Dexters, May 11, 2012.

  1. Dexters

    Dexters

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  2. Gallium

    Gallium CLM

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    Really smart move. IIRC He does not have to pay taxes to the US gov.
     

  3. hamster

    hamster NRA Life Member

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  4. RichJ

    RichJ

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    See ya'. It's still going to cost him though.

    "Saverin won’t escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from their stock holdings, even if they don’t sell the shares, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan’s law school. For tax purposes, the IRS treats the stock as if it has been sold."
     
  5. AK_Stick

    AK_Stick AAAMAD

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    Wonder what they'd be able to do if he just said, sorry, not paying your exit tax.


    Not like the IRS is going to get him in Singapore.
     
  6. Halojumper

    Halojumper

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    While that's true, technically, there is no stock before the IPO so he might get off scott free.
     
  7. saluki9

    saluki9

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    That's actually not true at all, the shares are just not publicly traded. The stock was created when the company was incorporated.

    the key here being that because there is no public market for it, the value is greatly reduced.
     
    Last edited: May 11, 2012
  8. saluki9

    saluki9

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    They could freeze his assets. In addition, most major countries will extradite to the US, including Singapore.
     
    Last edited: May 11, 2012
  9. AK_Stick

    AK_Stick AAAMAD

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    Probably have a hard(er) time freezing the assets of a billionaire who doesn't want to be a US citizen anymore.


    Especially considering that when you're rich, the rules don't apply.
     
  10. devildog2067

    devildog2067

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    Tell that to Jeffrey Skilling, or Raj Rajaratnam, or Bernie Ebbers, or Dennis Kozlowski (hint: all rich folks, all in prison).
     
  11. johnd

    johnd

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    Thats a smart move and Id do the same if I were him with one exception: Id maybe talk about it AFTER Id left.
    Re all the rich people in jail comment, crime does pay and if you amortise their gains across their jail time you will see that they get paid very very well for their crimes. None of them will ever be on the streets when they get out.
     
    Last edited: May 11, 2012
  12. AK_Stick

    AK_Stick AAAMAD

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    I think the list of rich people who've avoided prison because of their money is much longer, and you very well know it :tongueout:
     
  13. devildog2067

    devildog2067

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    Indeed--money can buy some very skilled lawyers. But if you break the rules "enough" you're going down even if you're rich.
     
  14. AK_Stick

    AK_Stick AAAMAD

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    Really depends on who you are, and what you break.



    Judges are also a heck of a lot more lenient upon the rich and famous than the poor/middle class
     
  15. DanaT

    DanaT Pharaoh

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    Most countries will not extradite for taxes to the US. In almost every country taxes are a civil, as oopposed to a criminal, matter. Because it is a civil matter in those countries, they do not recognize the extradition request. You will not be extradited on a civil matter.

    Actually, i found one example:

    "Article 1(b) of the Supplementary Treaty amends Article 6 of the current treaty to specifically enumerate fiscal offenses--offenses in connection with taxes, duties, customs and exchange--for which extradition may be refused if the competent executive authority determines that
    extradition for any such offense would be contrary to the public policy or other essential interests of the Requested State."

    And another

    "According to the Secretary of State's
    Letter of Submittal, this provision was included in the treaty
    at Swiss behest because Swiss law for the most part prohibits
    extradition for purely fiscal or tax offenses." http://www.gpo.gov/fdsys/pkg/CRPT-104erpt32/html/CRPT-104erpt32.htm





    -Dana
     
    Last edited: May 11, 2012
  16. droidfire

    droidfire

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    I hope the door smacks him in the face and he falls on his @&% on the way out.
     
  17. raven11

    raven11

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    I was really hoping to hear about the IRS coming down hard. who knew, if Al Capone had renounced his U.S. citizenship he would have been alright , well besides that whole syphilis thing
     
  18. KommieforniaGlocker

    KommieforniaGlocker

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    UAE won't, Dubai is awesome if your rich. :supergrin:
     
  19. KommieforniaGlocker

    KommieforniaGlocker

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    Also if the money is in foreign banks that do not fall under the jurisdiction of US courts. They could care less what some judge in US says
     
  20. DanaT

    DanaT Pharaoh

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    WHAT???

    You mean someone outside of the USA would somehow think they are not bound by what a judge in the USA says?? I am shocked!! Absolutely shocked!!

    -Dana