Ex-PATRIOT Act to go after tax dodgers

By Catholic Online (NEWS CONSORTIUM)
5/17/2012
Catholic Online (www.catholic.org)

Act follows Eduardo Saverin's renunciation of US citizenship.

Uncle Sam doesn't like it when you dodge your taxes. Facebook co-founder Eduardo Saverin announced that he was renouncing his US citizenship ahead of Facebook's IPO, a move that would keep the government from getting its hands on his share of some $4 billion from the move.

No matter how many of these you have, you may not be able to dodge US taxes for much longer...

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WASHINGTON DC (Catholic Online) - Saverin actually relinquished his citizenship in September of 2011, well before the IPO announcement. However, it is believed he knew well that it was coming - and what it could cost him. Saverin has opted for citizenship in Singapore which has no capital gains taxes.

To prevent this from happening in the future, Senators Schumer and Bob Casey (D-PA) plan to announce what they call the "Ex-PATRIOT" act, or "Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy."

Presently, Saverin is pocketing some $67 million that would otherwise go to the IRS.

The proposal would actually make it legal for the US to go after Saverin and others like him who attempt to avoid taxation by renouncing citizenship and moving money offshore. The law would prevent such individuals from entering the US ever again.

The law would also impose a 30 percent capital gains tax on anybody who renounces their US citizenship.

Meanwhile, Saverin's spokesman, Tom Goodman explained his actions by saying in an email to Bloomberg News, "Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time."

Renunciation of US citizenship is relatively rare. Last year, only about 1,700 people renounced US citizenship.

� 2012, Distributed by NEWS CONSORTIUM.

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Keywords: Eduardo Saverin, facebook, ex-partiot act, Schumer, taxes, IPO

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