Zuckerberg dismisses ‘tax dodge’ claims over $45bn charity initiative

Facebook founder Mark Zuckerberg has hit back at critics who said giving away 99 per cent of his fortune was little more than a tax avoidance move. The entrepreneur, who announced he was turning over about $45bn to worthy causes to celebrate the birth of his first child, Chan, said the set-up of the venture was so “we gain flexibility to execute our mission more effectively”. He denied he trying to protect his wealth, saying: “We receive no tax benefit from transferring our shares to the Chan Zuckerberg Initiative.”

This enables us to pursue our mission by funding non-profit organizations, making private investments and participating in policy debates – in each case with the goal of generating a positive impact in areas of great need.

Mark Zuckerberg

Mr Zuckerberg was criticised because he moved the shares to a limited liability company rather than setting up a charity. But the 31-year-old said creating an LLC would allow investment for profit and allow spending on lobbying. He added said that if his intentions were to avoid tax, he would have simply set up a charity. “If we transferred our shares to a traditional foundation,” he wrote in a Facebook post, “then we would have received an immediate tax benefit but by using an LLC we do not. And just like everyone else, we will pay capital gains taxes when our shares are sold by the LLC.”

zuckerberg Business