Facebook co-founder Eduardo Saverin has renounced his United States citizenship, according to an IRS report, days before the corporation’s IPO.
The information, initially released by Bloomberg yesterday, was based on an Internal Revenue Service notice late in April that listed individuals “who have chosen to expatriate”.
Facebook intends on raising as much as $10.6 billion ($13.3 billion) in an IPO that is expected to bring the company to a net worth of $96 billion dollars.
The IPO may leave Mr. Saverin, who, at one time owned 5 percent of Facebook, with an enormous capital-gains tax bill.
Mr. Saverin has sold the majority of his Facebook holdings and is not listed in the initial public offering filing documents that indicate shareholders who own more than 5 percent of the company, but Savarins’ holdings are still assumed to be significant.
A spokesman for Mr. Saverin did not reply to several requests for comment on why Saverin had renounced his citizenship right before the IPO. As we reported last month, a record amount of U.S. taxpayers are renouncing their citizenship because of the IRS.
Eduardo Saverin resides in Singapore, a city that has no capital-gains tax. There is a minimum 15 percent tax rate for long-term capital gains applied to U.S. Citizens who fall into higher-income brackets.
Saverin, who was born in Brazil, attended Harvard and later co-founded Facebook along with Mark Zuckerberg.
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