5 citizens who left the U.S. to avoid paying tax





AUSTIN, TX- JANUARY 11: John Evans dressed as Uncle Sam joins Tea Party groups convened at a rally at the Texas state capitol during the first day of the 82nd Legislative session on January 11, 2011 in Austin, Texas. The demonstrators picketed demanding true conservative values from elected officials. (Photo by Ben Sklar/Getty Images) Renouncing U.S. citizenship With news this week that Denise Rich, ex-wife of a renowned tax-dodger, is renouncing her U.S. citizenship and thereby avoiding taxes, we decided to take a look at other successful citizens who became ex-pats in order to avoid filing a 1040. Apparently it's getting more common as the IRS cracks down on undeclared and untaxed foreign holdings. Tax attorney Jim Duggan says it's not too difficult for an American to renounce U.S. citizenship. All it takes is an appearance at a U.S. embassy or consulate, some paperwork, and an exit tax, one of the drawbacks, according to Duggan. Though expatriation remains relatively uncommon, Duggan says the yearly count of Americans who have renounced their citizenship has significantly increased. "In previous years, the average number of renunciations was in the hundreds, not thousands," Duggan says. "Approximately 1,800 U.S. citizens renounced their citizenship in 2011, and it is anticipated that this number will exceed 2,000 this year." The U.S. is the only country save Eritrea that imposes tax on its citizens abroad. That rule no longer applies to these former Americans.

5 citizens who left the U.S. to avoid paying tax William F. Browder (Credit: World Economic Forum/Michael Wuertenberg/Wikimedia, file) William Browder Born in New Jersey in 1964, William Felix Browder is the Chief Executive Officer and co-founder of Hermitage Capital Management, a $1 billion British investment fund. Browder, a grandson of the chairman of the U.S. Communist Party from 1932 to 1945, gave up his American citizenship in 1998, two years before he co-founded the fund with Lebanese-Brazilian Jewish banker Edmond Safra. "Well, my grandfather was the biggest Communist in America," Browder said in an interview in 2006, the year he was barred from re-entering Russia. "I'm one of the biggest friends there is in Russia," Browder said. "I've brought $4 billion of capital. I've been extremely supportive in the West of their policies. It couldn't, they couldn't possibly be kicking me out like this." Officials with the U.S Department of State had no serious plan to assist Browder find a new home in 2006, after he renounced his American rights for tax reasons.

5 citizens who left the U.S. to avoid paying tax NEW YORK, NY - APRIL 28: Eduardo Saverin, co-founder of Facebook attends the 7th Annual Common Sense Media Awards honoring Bill Clinton at Gotham Hall on April 28, 2011 in New York City. (Photo by Jason Kempin/Getty Images for Common Sense Media) Jason Kempin/Getty Images for Common Sense Media Eduardo Saverin Facebook co-founder and Harvard graduate Eduardo Saverin gave up his U.S. citizenship this year, months before Facebook's IPO made him a multi-billionaire, though his spokesman said he made the decision last year. Brazil-Born Saverin, who emigrated to Miami with his family in 1998, now lives in Singapore, which imposes no capital-gain tax. As a resident there, Saverin reportedly could save as much as $100 million in U.S. taxes. The 30-year-old Saverin currently ranks 634th on Forbes' list of the world's billionaires, but faces the possibilities of being taxed 30 percent on any future investment in the U.S. and being barred from re-entering the country forever, according to a new proposal by U.S. lawmakers. "Eduardo Saverin wants to de-friend the United States of America," Sen. Chuck Schumer said last month. "Sen. Casey and I have a status update for him: Pay your taxes in full or don't ever try to visit the U.S. again."

5 citizens who left the U.S. to avoid paying tax LONDON, ENGLAND - MAY 14: Dr John M. Templeton listens to His Holiness the Dalai Lama (R) during a press conference in St Paul's Cathedral before a ceremony to present His Holiness with the 2012 Templeton Prize on May 14, 2012 in London, England. The exiled 76 year-old Buddhist Tibetan leader will receive the international prize worth 1.1 million GBP that honours people who 'affirm life's spiritual dimension' from the John Templeton Foundation. (Photo by Oli Scarff/Getty Images) John Templeton John Templeton, who Money magazine called "arguably the greatest global stock picker of the century," was an American in 1954, when he established his Nasssau, Bahamas-based Templeton Growth Fund. Templeton also started the first emerging markets fund available to U.S. investors. He renounced his U.S. citizenship in 1968, before he sold his empire of international funds to Franklin Resources, and moved to the Bahamas. Bahamians don't pay income or investment tax. Keeping his income from Uncle Sam was Templeton's main reason for his expatriation, but he thought that living in paradise, far from the noise on Wall Street, made him a better investor, according to a 2004 interview in the soon-to-be-shuttered SmartMoney magazine. Templeton, who held duel naturalized Bahamian and British citizenship, passed away in 2008 at the age of 95 in Nassau.

5 citizens who left the U.S. to avoid paying tax DUESSELDORF, GERMANY - NOVEMBER 19: Jet Li attends the 20th UNESCO charity gala at Maritim Hotel on November 19, 2011 in Duesseldorf, Germany. (Photo by Andreas Rentz/Getty Images) Jet Li Former American and Chinese citizen Jet Li is currently Singaporean. The law in Singapore forbids dual citizenship. Unannounced, the kung fu and movie star renounced his U.S. citizenship in 2009 after he moved to Singapore with his family for his two daughters' education, according to the Associated Press. Jet Li's movie credits include Hollywood hits such as "The Mummy: Tomb of the Dragon Emperor," "Romeo Must Die" and "Kiss the Dragon."