U.S Passport Not Worth $600million…..

…at least as far as Facebook co-founder Eduardo Saverin is concerned.

It’s been reported that IRS documents reveal that last year Saverin renounced his U.S citizenship along with almost 2,000 others.

It seems that he would rather not give Uncle Sam the $600million in capital gains tax expected on his share of Facebook when the company ‘goes public’ in a bid to raise over US$10 billion.

Little wonder then that in the lead up to U.S Presidential elections, coupled with Google’s $1.65 billion overseas tax ‘shift’,  Obama’s views on the tax treatment of U.S ‘persons’ might ‘evolve’ just as his thinking on ‘gay’ marriage has.

In fact this evolution especially in relation to high net worth individuals (HNWI) must take place not only in the U.S put also in the UK and Europe although arguably the pressure to do so across the Atlantic may not be as acute.

How quickly this change takes place will have a direct correlation to the number of countries that will step in to provide the type of tax treatment supportive of the tenacity of spirit that is the hallmark of all successful businesses but absent the associated penalty on its owners for profitability.

 

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3 thoughts on “U.S Passport Not Worth $600million…..

  1. It’s not worth throwing my Canadian spouse and child under the bus for. Sorry but, it’s just not. Even though I’d owe zero tax to the U.S. The way they have gone about getting public support for FATCA has left a very bad feeling among most expats who are not rich. They only ever mention the minority rich expats and lump as all in with them. The Hill publication among others has said FATCA “Going after criminal tax cheats!” All while neglecting to mention the damage to the majority every day expat. International tax preparers are far flung here in Canada if you don’t live in a major city and elderly expats who haven’t lived in the U.S. in decades are waking up to the fact they can’t afford to be dual. In fact, FATCA is going to make it so only the very wealthy will be able to hold dual or live outside the U.S.

    While the press will tell the story of Tina Turner and FB co founder, they will leave off the majority of people who will renounce over FATCA. We have foreign family with no economic ties to the U.S. who object to this and we have little choice in this matter. Some of us will be denied banking if we are still U.S. citizens and we cannot live where we cannot bank. U.S. home landers have said “Then just come home!” Really? What if we have no job there? Is the U.S. prepared for us to land back there with no jobs and with foreign family in tow?

    FATCA is going to cause the renouncing numbers to go up. That’s a sad fact. It’s also going to lose the U.S. a LOT of good will ambassadors abroad. They may not think right now that was worth much but, believe me, every American abroad will tell you that multiple times a day they have had to try and present the U.S. in a pleasant light to foreign persons in the cities and towns where they live abroad. U.S. doesn’t encourage dual citizenship anyway yet, if you renounce even though you are forced to by FATCA you are still going to be vilified for having done so.

    I don’t think we need to ask what a U.S. passport is worth to us, I think we need to ask the U.S. what expats are worth to them, if anything at all other than a means to collect penalties. We have no representation in the government who will listen to us. We get no benefit from it at all if we are also a citizen of another modern nation. U.S. should just disallow dual again since they are making it clear they do not value their citizens abroad except for herding us into a tax and penalty pen.

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  2. My colleagues needed to fill out CA 5020 last month and were informed about a business that hosts a searchable forms database . If others are searching for CA 5020 too , here’s http://goo.gl/DrLuHM

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