CITIZENSHIP IS NOT TOILET PAPER
It’s not something you get and then wipe your ass with when it becomes a bit inconvenient.
Which is apparently what Facebook co-founder and billionaire Eduardo Saverin thinks it is.
In anticipation of Facebook’s IPO Saverin, who was born in Brazil but who has been a U.S. citizen for the past ten years, has renounced his American citizenship in an effort at evading taxes on his profits from the upcoming IPO. Taxes that could amount to more than $100 million.
Unfortunately for Saverin it appears he’s gotten some really shitty legal advice and that prior to his renunciation he was not aware that when you give up your U.S. citizenship for the purposes of avoiding taxes you may very well be prohibited from ever entering the United States again.
The law is rarely enforced but apparently in Saverin’s case its gonna be — especially now that the press is all over the news and two U.S. senators are on the case — including powerful New York Dem Chuck Schumer — who has said he’s going to make sure that Saverin never gets a chance to return to America.
I say fuck Saverin and the horse he rode in on.
This guy should never, ever, ever be allowed to return to the U.S. for any reason, period.
It’s bad enough that you renounce your citizenship — but to do so in a bald and shameless attempt at evading paying taxes is beyond the fucking pale.
This guy was able to come to the U.S. and attend Harvard — rather than some shit college in the educational backwater that his home country of Brazil is — where he met Mark Zuckerberg and from which he co-founded a multi-billion dollar company thanks to America’s business-centric environment.
And he was able to prevail in a lawsuit against his former partner — a lawsuit that made him stinking fucking rich — thanks to the American legal system.
But now he doesn’t want to be an American.
Or pay taxes.
Saverin and his attorney are apparently now being made aware of the magnitude of their fuckup and are laughably — and desperately — attempting to spin him as a “global citizen” whose decision to renounce his American citizenship just moments before the FB IPO had nothing at all to do with avoiding a tax bill.
Also, too, please ignore the fact that Saverin just moved to Singapore where he doesn’t have to pay ANY taxes at all because that too had nothing at all to do with trying to avoid paying taxes on the FB IPO, says his dipshit attorney.
This guy is nothing more than a rich entitled douchebag and if he ever tries to reenter the States we should arrest him and send him back to whatever rock he crawled out from under in handcuffs and leg irons.
And force him to fly coach to get there.
May 17th, 2012 at 8:24 am
Coach flight? Hell no, there has to be room in a cargo container going to Singapore.
May 17th, 2012 at 8:41 am
Fly? When all those shipping containers are going back to China empty?
May 17th, 2012 at 9:27 am
Didn’t he receive asylum in the US after his family was being threatened in Brazil? I seem to recall reading that. So yeah, if that was the case, he owes not merely his fortune but also his life to the US and its opportunities.
May 17th, 2012 at 10:05 am
Very on point Scott, he is evading a tax bill that is estimated 40 – 140 million dollars (some estimate a bit more), depending on how the IPO goes and the values of his shares (which would put him well above a few billion dollars in NET assets). Long ago, his family fled Brazil after they found out they, more importantly their then young son, Eduardo, were on a notoriously ruthless gang hit list for extortion/kidnapping/killing, so to Miami they all fled. To Miami, to America, they found asylum and protection in the legal system that seeks to collect a mere 15% of the fortune that the American construct, allowed him to amass, as you pointed out, from their legal system, technology infrastructure and capital markets.
Not only does he owe his life to America (his family could have fled to another Western country) but he owes his fame and fortune, because anywhere else, he would have been another spoiled rich brat working for his father or ventured out in some scheme working for his father’s friend’s company, but here, in America, he was able to have that chance meeting which changed his life and his fortune.
Spot on to say fuck him, if he comes back he should be arrested and held until he pays that 15% (plus interest), and unlike the gangs in Brazil, which would extort him for all his money then his life, this tax bill is owed, the fact that he cannot see that his very life and existence is owed within that is a marvel that is only matched by mentally handicapped person’s comprehension of the whole scenario, and even then they would do the right thing being of a more gentle ilk.
May 17th, 2012 at 10:12 am
10 million bucks to him is like $1000 for us mortals. A nice sum, but not enough to change our standards of living.
I think it’s possible for the government to put a lein on his US properties for back taxes
May 17th, 2012 at 10:15 am
Please do not mix a stupidly stupid and idiotic decision of a spoiled rich kid that was just born in Brazil, unable to discern between a childishly-selfish-ungrateful and dumb legal advice or a good and ethical tax strategy from decent legal advisors, with his compatriots .
“rather than some shit college in the educational backwater that his home country of Brazil is”- And your comment is just wrong and leans toward bigotry. I believe you know almost to nothing about Brazil, or our Universities and education system. Yes, agreed, not the best one. But continuously improving, based on ethics, tolerance, democratic values, freedom of speech, social responsibility and hard work. Come down south and get to know us first. Ok?
Still a fan of your blog.
May 17th, 2012 at 12:07 pm
Quite a slap in the face when you think about the incredible advantage he’s been provided. Its not as if the money being taxed was somehow so onerous it would impact his ability to build his business or impact his lifestyle. Either way he would never see a dent in his standard of living – nor would his children if he ever has them.
A sad statement on this man’s moral compass.
May 17th, 2012 at 1:52 pm
My wish is that the tax advoidance schemes by all the FB billionaires will be pounded on by Obama as an example of the rich not paying their share.
May 17th, 2012 at 2:13 pm
Oh you hypocritical bastard, Scott Smith. You post all these fantastic articles about being kind to animals, but you’re a bigot. If Saverin had ridden on in a dog, I bet you’d never have written this blog entry. But simply because he rides in on a horse, you suddenly recommend bestiality?
Fucking him is one thing, Mr Smith Sir, but fucking his horse as well? You didn’t even suggest offering that poor equine a sugar lump or carrot to sweeten the deal.
After reading this comment I don’t know whether to send your comments to the tsax authorities in support of what you say or the ASPCA in the hope they’ll reem your horse-hating bum.
I hope you understand your nastiness here – and were I your partner I’d spank you for being naughty… (I think we all know that that punchline doesn’t need to be finished).
Anyhoo, had you suggested Saverin get fucked by an American horse, I might be with you. However, suggesting to your millions of readers that they should fuck a horse… well, I think we all know where you’ve gone wrong there.
While most BIE readers have penises of sufficient size to pleasure a mare, I suspect that most of us are vagina decliners – and even if the horse is male, I am pretty sure the majority of us are in a brotherhood of steer-rear-fear.
You should hang your head in shame. Nay, Sir, neigh.
May 17th, 2012 at 2:30 pm
I’ve forgotten how to say schadenfreude in Portuguese…
May 17th, 2012 at 2:51 pm
BiFromBrazile I’d love to come visit but I’m not enthused about the need to travel with a security detail everywhere I go.
My BF just got back from Sao Paulo and while he was there he was assigned three armed security guards that went everywhere with him and, when he traveled from his hotel to business meetings, he was picked up on the hotel roof landing pad by a helicopter and dropped off on the roof landing pad where the meeting was being held because travelling the streets in a car was deemed too dangerous.
So yeah, you may be right — you guys may be working at advancing your educational system and that’s just great. But when a foreign national is told by locals not to use the streets in your biggest city then you’ve crossed the line from backwater to something much much worse.
May 17th, 2012 at 4:02 pm
So gets citizenship – and me, grandson of an American WW2 soldier gets thrown out?!?!?!
May 17th, 2012 at 4:46 pm
After reading dazzer’s post I am dazed, confused and my head hurts. I think I need a shot (ok, truthfully 3) of Q vodka about right now.
May 17th, 2012 at 5:17 pm
If you are German and get a job in Japan – you pay Japanese taxes. If you are Singaporian and move to Australia – you pay Australian taxes. How can you defend the fact that the US is the only courty that assumes the right to tax its citizens no matter where they live?
How would you feel if New York state and city demanded incomes taxes despite your move to Seattle?
May 17th, 2012 at 5:23 pm
IIRC Washington state has no income tax and neither does Seattle. Are you not a tax cheat like Eduardo for fleeing high tax NYC for tax free Seattle?
May 17th, 2012 at 6:36 pm
BAHAHAHA Scott you rock. This guy is a colossal tool and not in a good way either.
May 17th, 2012 at 6:48 pm
Dazzler – have u been gargling bong water ?!?!?!?!
May 17th, 2012 at 6:57 pm
Oh Gregorio, that’s your answer for everything.
May 17th, 2012 at 7:13 pm
He obviously doesn’t want to be in the US …
Singapore is boring … BORING … pretty but boring …
it’ll never be London, NY, Seattle, SF …
rich and bored … doesn’t sound like a life plan for a bjillionaire to me …
I hope he enjoys growing rice and giving all his money to the natives of his country …
he’s gonna miss the art, culture, society etc. etc. etc.
also shame on him — this is a (relatively) small amount to him …
shame ..
May 17th, 2012 at 10:48 pm
Thanks Scott! Now, I have another accolade from BIE! As a Syrian Jew born in Texas with Permanent Residency in Brazil, I pay taxes in Brazil, Florida and the U.S. If I didn’t have to work, I’d stay in the most wonderful place in the world, Cabo Frio, RJ, Brasil. But please, Sao Paulo is to Brazil as Chicago is to the U.S. Even a blind man is wise enough to know that an elephant isn’t shaped like a tree (I taught in Beijing for 6 years).
May 18th, 2012 at 12:00 am
I’m no fan of tax avoidance but if it’s legal, blame equally those who make the rules, as well as those who take advantage of them. He’s probably not been given the best advice and to think that someone – media or politicians – wouldn’t have made capital from his decision appears naive. At least the Singaporeans have some principles: if you want our passport, give up your own.
In defence of Brazil, I’ve travelled there many times for business (and pleasure…), and never needed or felt the need for a security detail, nor been advised to have one by my clients. The helicopter might have been a more effective way to avoid the traffic jams in Sao Paulo than any marauding gangs of kidnappers…
May 18th, 2012 at 3:41 am
Excellent as usual Scott, but would you, or someone else, please expalin dazzer’s comments?
May 18th, 2012 at 3:49 am
Aliens often used to enter the country from across the sea, but with this new hate campaign against horses THEY are now the ones catching on fast and are actually trying to escape. Just a few days ago a horse in Santa Barbara tried to make a swim for it, but was caught 3 miles offshore before being hauled back in. Does that mean “hold onto your horses” will now become a US election issue?
May 18th, 2012 at 5:08 am
WOW! Jmo, way to construct a totally false equivalency. I didn’t give up my US citizenship in order to not pay income tax in Seattle or Washington — which is what the point of this blog post was all about, in case you missed it.
And Saverin wasn’t looking at a $100 million state and local capital gains tax — he was looking at a federal capital gains tax — which is a tax that I pay, along with my annual federal income taxes.
May 18th, 2012 at 5:17 am
Jmo I can defend that law quite easily. Ready?…….. Are you paying attention? …….
Here we go. . . . . . BECAUSE IT’S THE FUCKING LAW AND WE AREN’T FUCKING GERMAN NOR ARE WE SINGAPORIAN.
Got it?
Also, and just as an aside — before you go spouting off about shit you clearly don’t know a damn thing about, I’d suggest you take a little time and familiarize yourself with the US Tax Code.
If you’re living abroad and working for a year or more and you don’t come back to the States for more than 35 days during that 12 month period you can exclude paying taxes on the first $91,500 of earned income. Also, if your rent, utilities and living expenses exceed $13,000 you can deduct that amount as well.
May 18th, 2012 at 6:11 am
Simple solution: Declare Mr. Saverin an “enemy combatant,” confiscate all assets as ill-gotten gains- lord knows we could use the money- and use either extraordinary rendition to drag him back to Gitmo, or better yet a drone strike to save the cost of incarceration. The “evidence” against him is classified, of course.
May 18th, 2012 at 7:02 am
“He’s probably not been given the best advice”
The problem isn’t with the financial or legal advice he’s been given. It’s with his money-grubbing, ungrateful-ass attitude. Most Americans don’t need a lawyer or accountant to explain what it means to renounce US citizenship.
May 18th, 2012 at 7:33 am
“I didn’t give up my US citizenship in order to not pay income tax in Seattle or Washington — which is what the point of this blog post was all about, in case you missed it.”
No, you gave up your citizenship in the city and state of New York to avoid paying New York state and city income taxes.
Jmo I can defend that law quite easily. Ready?…….. Are you paying attention? …….
Here we go. . . . . . BECAUSE IT’S THE FUCKING LAW
So, you defend our draconia drug laws – because it’s the law? You do know Scott, the law is often wrong and needs to be changed.
May 18th, 2012 at 8:07 am
jmo you are clearly a fucking idiot. Your assertion that the reason I moved from New York to Seattle so that I could avoid paying New York taxes is so totally fucked in the head as to be laughable.
I moved from New York to Seattle because my BF Richard is from here, went to college here and was homesick and wanted to move back.
THAT and THAT alone is why I moved out here you fucking tool.
If you’re going to make an argument here in the comments at least make a coherent one that’s based on actual facts. Not shit that you make up in your little head that fits you argument.
Also, too, when did we start talking about drug laws? I thought we were talking about tax law?
And do you know my position on the drug laws?
No, you do not. So don’t try to bring that into the present discussion since what I believe and what you know or don’t know me to believe on that particular subject is immaterial to the discussion of Eduardo Saverin renouncing his American citizenship for the purpose of avoiding paying taxes.
Oh, and btw — you aren’t a CITIZEN of New York or Seattle or Washington or Texas you fucking dimwit — you’re a fucking RESIDENT. You’re a citizen of the United States and a resident of the state that you happen to live in at the time.
So giving up citizenship is a big fucking deal and requires a forma act of renunciation and an acknowledgement of same by the federal government. While giving up residency simply means that you’ve moved your domicile from one state to another.
Get a fucking clue.
May 18th, 2012 at 8:23 am
save your breath scott. jmo is never going to understand what your saying because he doesn’t want to. he’s decided that he knows why you do what you do and since what he believes about you fits his pathetic little narrative nothing you say to prove himwrong will ever change his mind. because he obviously thinks he knows more about you than you know about you.
he must be a republican, because thats typical republican behavior.
May 18th, 2012 at 8:25 am
“Your assertion that the reason I moved from New York to Seattle so that I could avoid paying New York taxes is so totally fucked in the head as to be laughable.”
When did I assert that? Much like Eduardo, your primary reason for moving wasn’t taxes. But, the fact that you both save significant amounts of money by moving to a low tax area, is just a pleasant bonus.
You have to admit that avoiding 10.53% in state and local income taxes is one of the many great things about moving to Seattle from NYC.
May 18th, 2012 at 8:32 am
“When did I assert that?”
Here’s where you asserted that:
“No, you gave up your citizenship in the city and state of New York to avoid paying New York state and city income taxes.”
Read your own words! They’re what you wrote in the previous comment!!!!
Are you really this fucking dim?
May 18th, 2012 at 8:53 am
Scott,
Read your own words!
You read them:
If you bother to read the whole paragraph: Much like Eduardo, your primary reason for moving wasn’t taxes. But, the fact that you both save significant amounts of money by moving to a low tax area, is just a pleasant bonus.
May 18th, 2012 at 9:09 am
jmo — you really are a fucking lackwit, aren’t you?.
This paragraph: “Much like Eduardo, your primary reason for moving wasn’t taxes. But, the fact that you both save significant amounts of money by moving to a low tax area, is just a pleasant bonus.“
Didn’t appear in the comments until AFTER I pointed out to you that you had claimed the only reason I moved from New York to Seattle was to avoid taxes. It was posted at 8:25 AM.
The comment where you said: “No, you gave up your citizenship in the city and state of New York to avoid paying New York state and city income taxes.“
Was posted at 7:33 AM — a whole hour earlier.
READ THE FUCKING THREAD YOU TWATWAFFLE!
The “much like Eduardo” comment didn’t come until a LATER COMMENT and it was, therefor, impossible for it to be in the same paragraph as your earlier fact-free assertion and which was the comment that I was responding to when I said that you were wrong in asserting that the only reason I moved to Seattle from New York was to avoid taxes.
They’re your words you dolt.
They’re in print for you to read.
In chronological order and with time stamps on them and everything!
FUCKING READ THEM!!!!!
And now you are officially banned from ever commenting here again.
Not because you annoyed me — which you did.
But because you are stupid.
May 18th, 2012 at 1:00 pm
To the esteemed Gregorio, equally esteemed Damien Oz and most likely esteemed Brock, I will merely reiterate the words of the late Queen Mary (nee May of Teck): ‘Never apologise, never explain’.
(Oh go on then. Scott wrote: ‘I say fuck Saverin and the horse he rode in on.’ Hence my comment.)
I note that some people treat carnal relations with horses as a matter of levity.
From my comments above, I think you can see that I don’t. It’s a deadly serious social issue with far-reaching animal welfare implications. Frankly, I shudder when I consider the possibilities of what might happen when a horny mahoot finds a stepladder and an elephant in the same room. And when a slightly drunk oceanographer meets a gray whale or a lonely Australian farmer sees an enticing mouse in the middle of a rodent plague. Well, the picture paints itself…
Inciting horse-fucking is not big and it’s not clever. Well, it is big if you’re fucking anything larger than a Shetland pony, but you get my point.
Quite evidently, I have a sense of humour failure when it comes to equine abuse.
I just raised a red flag here because in the current economic climate there are likely to be many more tax evaders on the horizon – and how many of them will have pets that Mr Smith expects us to bugger before those miscreants get the message that tax evasion ain’t cool?