Los Angeles Asset Protection Attorney Bruce Givner Comments on the New Expatriate Trend among the Very Rich

by Bruce Givner on July 23, 2012

“She wasn’t the first, and she certainly won’t be the last,” commented Los Angeles Asset Protection Attorney Bruce Givner after wealthy socialite Denise Rich gave up her U.S. citizenship to become an Austrian citizen. “And it probably wouldn’t be newsworthy if we weren’t in such challenging economic times and Eduardo Saverin, a Facebook cofounder, hadn’t recently expatriated,” finished Givner.

Like Saverin, Rich, also a Grammy nominated songwriter and the former wife of the pardoned billionaire commodities trader Marc Rich, will decrease her U.S. tax bill by tens of millions of dollars in US taxes, even though required to pay a U.S. “exit tax" on any property she owns anywhere in the world.  Furthermore as an Austrian citizen she will get a very generous tax break if she lives half of the year outside of Austria.  Rich plans to move to London where the UK will also exempt from UK taxes any income Rich earns outside the UK unless she remits the income to the UK.

In May 2012, Senators Schumer (D-N.Y.) and Bob Casey (D-Pa.) introduced in Congress the “Ex-PATRIOT” Act (“Expatriation Prevention by Abolishing Tax-Related Incentives for Offshore Tenancy) which would reimpose taxes on expatriates even after they leave the U.S, and a 30% tax on capital gains.

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