Published in El Nuevo Herald on May 24, 2012
Studying in one of the best private schools in Miami and famed Harvard University. Co-founding Facebook and amassing a fortune of $ 2.880 million. That's all very well, except the fact renouncing U.S. citizenship. This is the case of Brazilian Eduardo Saverin, 30.
After this country that has given him everything: home, studies and fortune apparently found no better way to thank the sort to give up U.S. citizenship. Of course, there are always studies, but to fortune, to that it does not waiver.
Saverin argues that U.S. law Foreign Account Tax Compliance Act (FATCA) requires banks to report foreign accounts movement of U.S. citizens abroad. If banks do not report these balances will be subject to a penalty of 30% of the profits of U.S. financial assets. Likewise, if the Americans owners of these accounts do not report any activity that exceeds $ 50,000, shall be fined with 40% of the undeclared amount.
All this seems logical. However, Saverin has been living in Singapore for the past few years and this is a country that does not tax capital gains, unlike the United States, which imposes a minimum of 15% on such dividends. Moreover, the implementation of FATCA will be completed by 2014 and so far only France, Germany, Italy, Spain and the UK have accepted this agreement.
In response to this move by Saverin, Democratic Sens. Bob Casey and Chuck Schumer are proposing a new law known as Ex-Patriot, by which it will impose a 30% tax on capital gains to those who renounce U.S. citizenship . They are also physically prevented from entering U.S. territory.
Perhaps due to future full implementation of the law of FATCA bank reports, the renunciation of U.S. citizenship has increased from 235 cases in 2008 to over 1,700 in 2011. Even, a Geneva-based organization called American Citizens Abroad, representing six million Americans abroad, has launched a campaign to repeal the law FATCA because since last year, major European banks with operations in Switzerland have begun to close U.S. accounts with activities in the capital market.
If we see, the renunciation of U.S. citizenship is a business, should be treated as such. En ese sentido lo que es igual no es trampa. In that sense what is the same is not trap. United States has the right to defend itself and protect its values.
Economist and Journalist.
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