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International Tax Advisory Services Partner Susan Brown Otto on Facebook co-founder Eduardo Saverin denouncing his U.S. citizenship.
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-- -- FaceBook founder and co-founder Eduardo us average and he's saying that taxes had nothing to do with him giving up his US citizenship.
That he's gonna continue to invest in the US even though we no longer lives here lawmakers are not buying into senators of course unveiled the plan this morning saving they want to meet impose taxes.
-- average and bar him from ever come back to the US.
This is outrage and of course the big question is is it justify joining us now Susan Brown -- partner at international tax advisory services.
Susan I don't I feel about this but do you feel like this is justified that's the big question well that's to a degree of political question -- is down.
Anyway to in my opinion not the law provides what it provides and done it provides for him to expatriate and he ex -- -- last year so people should understand that.
As a citizen of the United States no matter where you bell on this fine planet.
Uncle Sam can come back -- gets you.
And you have to pay taxes on everything you -- everywhere in the world.
Yes and what a lot of people don't realize some discussing this -- the story with people is that the United States is very unique in the world as to how they tax -- US citizens.
In fact the -- countries in the world to my knowledge is up there only two countries that tax or citizens like the United States to get a does.
On the United States and a small country in Africa called Eritrea.
So don't go live very that OK but so what -- are hot dozens are now looking at is as a -- tomorrow.
Shattering could be worth about four billion dollars they're looking at like -- 67 million dollar tax receipt if he ever did sell his shares.
And now they're saying you know what not fact he left before that was assessed.
We want to back -- blunt when he -- from what I've read and in newspapers about what happened to and this is public knowledge as well because the individuals that had ex patriot -- that's published in the federal register on a quarterly basis of his name appeared in the federal register.
Because he renounces citizenship.
There's certain steps you have to take in order to do that town it's not enough to just kind of to passport -- that special steps you have to take.
And he is what is subject to a certain type of mark to market -- attacks and we've been talking about that as is that he sold his assets the day before -- he left any -- capital gains.
Now how easy is it to prove more difficult I should say to prove that.
He left for tax purposes -- eight.
It's an accent well really -- into the the rules have changed quite a bit over the past two years so there was one set of rules in effect for part of 2004 to 2000 -- -- And then they changed.
On again in 2000 in eight for people that renounce your citizenship or long term residents people that had green cards.
For -- more than seven of the past fifteen years isn't the bigger problem though our tax system I mean it's no different than someone from.
New York State moving to Florida because there's no state tax there right exactly they exactly and I've used that illustration people may wait to welcome to the -- that -- -- that people do become super that you know everyone's coming down on -- -- this selling out his assets but it could be bigger than that too we also.
Potentially have a 55% estate tax coming down the pike -- -- so.
This -- not getting.
Died this money well and there are some other taxes as well that people on have been talking about next should there's a three point 8% Medicare tax and investment -- -- that's going to start.
The long term capital gains tax rate is scheduled to expire at the end that they share and -- -- talking about the state income taxes as well.
It's there's so many different taxes and it he he could -- actually it's left for a myriad every reason that I think.
What we have to start doing is focusing on fixing our tax problem because we are not we're not kind -- people that make money.
Well also for people that have anything international about their profile there -- just a lot of complex rules.
On that there are -- bank account reports that are due at the end of next month.
There's -- a form 8938.
Part of the -- The foreign account rights compliance -- -- cut.
Right so there's all -- make new rules and regulations can talk about what you're seeing in Europe practice -- are people are more and more wealthy people renouncing their citizens well I'm more more people are and also people with green cards as well and on the list that's published in the federal register those are people -- -- US citizens.
That meet the requirements or long term were a resident green card holders but there are people that give up their green card.
In the six year for example.
And those names to my knowledge -- not on the list yet exactly you're right let's -- and fitted isn't everybody's Susan Brown -- thank you so much is in.
