Facebook founder Mark Zuckerberg caused quite a stir this week by announcing that he would give away 99% of his personal shares in the company.
Also announcing the birth of his daughter, Max, Zuckerberg, explained in a post on his personal page, that his aim was to ‘improve this world for the next generation”.
While his philanthropic gesture was met with praise by most, some questioned the billionaire’s motives.
Now he has responded to criticism with another Facebook post, where he explains that there are no tax benefits to be made from the proposed move.
“By using an LLC instead of a traditional foundation, we receive no tax benefit from transferring our shares to the Chan Zuckerberg Initiative, but we gain flexibility to execute our mission more effectively.
“In fact, if we transferred our shares to a traditional foundation, then we would have received an immediate tax benefit, but by using an LLC we do not.”
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He also explains in more detail the aims of the newly announced Chan Zuckerberg Initative.
“The Chan Zuckerberg Initiative is structured as an LLC rather than a traditional foundation,” writes the Facebook founder. “This enables us to pursue our mission by funding non-profit organizations, making private investments and participating in policy debates .”
So there you have it – no tax dodging for Zuck.