Facebook's Saverin says to pay millions in U.S. tax

Thu May 17, 2012 3:27pm EDT

The loading screen of the Facebook application on a mobile phone is seen in this photo illustration taken in Lavigny May 16, 2012. REUTERS/Valentin Flauraud

The loading screen of the Facebook application on a mobile phone is seen in this photo illustration taken in Lavigny May 16, 2012.

Credit: Reuters/Valentin Flauraud

U.S. Secret Service provide security for President Barack Obama in Pensacola, Florida, June 15, 2010. REUTERS/Jim Young

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(Reuters) - Facebook co-founder Eduardo Saverin said in a statement on Thursday that he is obligated to and will pay "hundreds of millions of dollars in taxes to the United States government."

Saverin said his decision to renounce his U.S. citizenship and relocate to Singapore was "based solely on my interest in working and living in Singapore, where I have been since 2009."

With social media company Facebook poised for a multibillion-dollar initial public offering on Friday, Saverin has been criticized by lawmakers for what they say is dodging U.S. taxes on expected stock market gains from his Facebook holdings.

In the statement sent to Reuters by his spokesman, Saverin said: "I have paid and will continue to pay any taxes due on everything I earned while a U.S. citizen. It is unfortunate that my personal choice has led to a public debate, based not on the facts, but entirely on speculation and misinformation."

(Reporting by Kevin Drawbaugh; Editing by Gary Hill)

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Comments (4)
commun5 wrote:
Yes, Eduardo, you probably will pay hundreds of millions of dollars in taxes to the US Federal Government. But as a citizen of the US, you owe hundreds of millions plus sixty-seven million more dollars in taxes to the US Federal Government. Pay up, or shut up!

May 17, 2012 4:03pm EDT  --  Report as abuse
theidahokid wrote:
That’s one way to keep from going to jail

May 17, 2012 4:06pm EDT  --  Report as abuse
ethanalden wrote:
Anyone with glancing familiarity with taxes would have known that taxes from capital gains must be paid for when citizenship is renounced (the IRS treats it like a one-time sale).

Saverin is not leaving America with the check, nor is he “insulting the middle class”. American citizenship didn’t make Saverin rich. Saverin made himself rich through intelligence and hard work. He just happened to be working in America.

May 17, 2012 4:37pm EDT  --  Report as abuse
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