As was noted last week, Facebook co-founder Eduardo Saverin renounced his U.S. citizenship, according to an IRS report. Some people speculated that the cause for this GTFOOTUSA was the savings in federal income tax because, as you may have heard, the Facebook is going public and ES is probably going to do okay when this thing goes down. Bloomberg crunched some numbers earlier today to determine just how much Eddie would be saving and HEY! it's quite a bit!
Facebook Inc. (FB) co-founder Eduardo Saverin will save at least $67 million in federal income taxes by dropping U.S. citizenship, according to a Bloomberg analysis of the company’s stock price. Those savings will keep growing if Facebook’s shares increase. [...] Bloomberg calculated the $67 million figure by applying the 15 percent 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.
Despite Mr. Willens checking the 'Berg's work, Saverin spokesman Tom Goodman DID NOT CARE FOR THIS assertion because A) the numbers are bullshit and B) his boss had much better reasons for moving to Singapore than $67 million:
“The calculations and assumptions are not only erroneous, they also further perpetuate the false impression that tax was the reason behind Eduardo’s decision,” Goodman said, declining to cite specific errors. “His motive had nothing to do with tax and everything to do with his desire to live and work in Singapore.”
Got it? Because if he was leaving on account of taxes, he wouldn't be able to set foot on these red, white, and blue shores EVER AGAIN. Can you imagine? He'd have to settle for his own private island in the shape of the U.S. Or whatever mega-billionaires spend their money on.
Facebook’s Saverin May Save $67 Million on U.S. Tax Bill [Bloomberg]