Spokesman to Facebook Co-founder, Tom Goodman has stated that Saverin renunciation was prompted not by tax considerations but by U.S. rules that make it more difficult for U.S. citizens to live and invest overseas.“U.S. citizens are severely restricted as to what they can invest in and where they can maintain accounts,” said spokesman Tom Goodman. “Many foreign funds and banks won’t accept Americans. This was a financial rather than a tax motive.” In a political environment that’s rife with talk of raising taxes on the wealthy and Obama's view that a thriving economy is built on a strong middle class, Mr. Saverin’s case could become another flash point. Should the US lower their standard in order to keep their own? It’s true many U.S. expatriates complain that American rules are making life more difficult and unbearable for them. Those include the U.S. tax system’s global reach (many countries tax based on residency); foreign bank account reporting rules; and the Foreign Account Tax Compliance Act (FATCA), which requires foreign financial institutions to start reporting to the IRS on U.S. citizens’ accounts. Well, I personally do think that if we have had a system such as this in my home country, then the case of James Ibori would not have surfaced. Its glaringly clear to the entire planet that the US have one of the lowest rates as regards corruption and money laundering. This is greatly influenced by the fact that the American system keeps a tight grip on all its citizen's financial records both home and abroad. Should Saverin's case now bring about an amendment of these rules? Expats say as a result of all the regulations, some foreign banks are dumping more U.S. customers. Mr. Goodman also cited FATCA, among other rules, as a problem for Mr. Saverin. Well, given the new global economy and the up-rise of foreign and international relations over the past decade, this may seem a bit of a problem. Saverin's move appears to be what it is. If Facebook had not announced its intention to start trading on the floor of the stock market, Saverin would have still been a US citizen. He might have foreseen the IPO coming and opted earlier to make his move.
My biggest question, Why has Saverin decided to turn his back on the very country that gave him access to the fortune he now controls. This dream began in America, blossomed in America, raked you billions from America and now you turn your back on the very source that gave you light? It is well-known, a farmer may have a seed, but without a good soil to plant it, there will be no harvest. America was the soil on which Saverin and co planted their seed, and very well they got a huge harvest. “His decision had nothing to do with dissatisfaction here, but with his
strong desire to do business there,” Mr. Goodman said. Saverin's decision may well be putting Facebook's IPO agenda at a big risk. Already a "close your accounts and let them eat their IPO" outcry is beginning to emanate from some quarters.
People as wealthy as Mr. Saverin tend to have an easier time untangling red tape than the average U.S. retiree living abroad. And given the fact that the country is just asking a little in return for the platform they have provided for you, after all the money was made off their citizens investments. Mr Saverin stands to gain a whooping estimate of about $4 billion when Facebook goes public.