Americans Revoke Citizenship Over Tax Law

Americans revoke citizenship over tax law (PressTV, April 27, 2014):

The number of American expatriates giving up their citizenship has recently surged because of a controversial tax law, a report says.

Federal officials have increased pursuit of what they refer to as potential tax evaders in recent years, the Associated Press reports.

In 2013, the US government reported a record 2,999 people renounced citizenship or terminated permanent residency.

The renouncers – whose ranks have swelled more than five-fold from a decade ago – often contradict the stereotype of the financial scoundrel, according to the report. Many are from very ordinary economic circumstances.

Facebook co-founder Eduardo Saverin was one of the rich Americans who decided in 2011 to turn in his American passport after moving to Singapore. Saverin likely avoided millions of dollars in taxes by doing so shortly before Facebook’s initial stock offering, the report says.

Among other wealthy Americans who have relinquished their US citizenship is Denise Rich, the ex-wife of pardoned trader March Rich. She expatriated in 2012 and lives in London.

Singer Tina Turner, a resident of Switzerland since 1995, also relinquished her US passport last fall.

The new law in America will require all financial institutions around the world to report directly to the US all the assets and incomes of any Americans as of July.

Critics say ordinary people are being dragged into an expensive form-filling nightmare due to the government’s tracking down of the wealthy tax-dodgers.

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