Three days after Facebook co-founder Eduardo Saverin was targeted by the media for allegedly fleeing the country in order to avoid taxes on the company's IPO, Saverin has responded. He told Forbes:
"My decision to expatriate was based solely on my interest in working and living in Singapore, where I have been since 2009... I am obligated to and will pay hundreds of millions of dollars in taxes to the United States government. I have paid and will continue to pay any taxes due on everything I earned while a U.S. citizen."
So in essence, Saverin is confirming that he won't pay nearly as much in taxes on the Facebook IPO — but because he has lived in Singapore, and not because he fled the US. A spokesperson said on Monday that Saverin had been living in Singapore, which doesn't levy a capital gains tax, and had decided to renounce his US citizenship a year ago. Many assumed that because Saverin's departure was only made public a few days ago, it must've had something to do with Facebook's imminent IPO. Only today has Saverin himself responded to the accusations and vouched for the living situation his spokesperson relayed.
Earlier today and prior to Saverin's response, Senators Chuck Schumer and Bob Casey proposed a new bill dubbed the "Ex-Patriot Act" which would force those like Saverin to pay taxes after heading off to live in a foreign country. The bill targets wealthy expatriates — it would only apply to those with net worth greater than $2 million. "I will continue to invest in US businesses and start-ups, and believe and hope that those investments will create many new jobs in the US and globally," Saverin added.