The Grammy-nominated songwriter Denise Rich was born in the U.S. and has renounced her citizenship.
Denise Eisenberg Rich, 68, born on January 26, 1944 in Worcester, Mass.. Denise currently resides in London. Denise is known for her friendships in the Democratic and European royalty crowds.
Denise‘s maiden name is Eisenberg, appeared on April 30 in the Federal Registrar’s Quarterly Publication of Individuals Who Have Chosen To Expatriate, though she left in November 2011. Denise handed in her American passport, tax lawyers say she is able to legally avoid paying significant taxes on her estate.
Denise gained her new Austrian citizenship through her late father Austrian-born, wealthy shoe manufacturer Emil Eisenberg.
The Socialite is the ex-wife of billionaire commodities trader Marc Rich, who was pardoned on January 20, 2001 by then-President Bill Clinton for tax evasion and and illegal trading with Iran after he fled to Switzerland. The pardon was considered controversial because it took place on Clinton‘s last day in office and of Denise‘s financial contributions to the Democratic Party and to the Clinton Library.
The couple divorced in 1996.
As of 2001, Denise had made more than $1.3 million in political contributions to the Democratic Party since 1993, including $70,000 to Hillary Clinton‘s Senate campaign and $450,000 to the Clinton Presidential Library in Arkansas.
Investigators told CNN at the time that there were Secret Service logs showing that Rich went to the White House the last night of Clinton‘s presidency.
She invoked the Fifth Amendment to the United States Constitution, which denies Congress the authority to compel self-incrimination.
In 1984, Denise penned the lyrics to “Frankie“, a hit in 1986 for the R&B group Sister Sledge. Since then, she has written songs recorded by Phyllis Hyman, Natalie Cole, Celine Dion, Jessica Simpson, Marc Anthony, Patti LaBelle, Chaka Khan and Diana Ross. Her work has been nominated three times for Grammy Awards, most recently for the 1999 Aretha Franklin and Mary J. Blige duet “Don’t Waste Your Time“. She also co-wrote the international hit “Candy“, by Mandy Moore.
Denise and her ex-husband Marc Rich‘s daughter, Gabrielle Rich Aouad, died of leukemia at age 27. As a result, Denise Rich and Philip Aouad, Gabrielle‘s widower, founded the G&P Foundation for Cancer Research. It has since been renamed Gabrielle’s Angel Foundation for Cancer Research.
The singer-songwriter’s wealth comes in part to a lucrative songwriting career, could save tens of millions of dollars or more in U.S. taxes, Reuters said. Austria’s tax system is also friendlier to people who reside outside of the country for at least half of the year.
The political fundraiser joins nearly 1,800 citizens and green card holders who officially severed ties with the United States last year, according to the IRS, a record since 1998. Facebook co-founder Eduardo Saverin also appears on this list. He renounced his citizenship to remain in Singapore in May shortly before Facebook‘s initial public offering. In Singapore, there is no capital gains tax.
But Denise is not completely off the tax hook. According to expatriation tax legislation passed in June 2008, she is considered a covered expatriate and will therefore have to pay an exit tax on the net gain calculations of her assets. It is still far less than she would have paid as a U.S. citizen with a large estate, however, according to tax attorneys.
Expatriation makes the most sense when asset values are historically low and tax rates are historically low.
Occasionally known as the “Lady Gatsby” by Yachting magazine, Rich owns many properties throughout the U.S. She frequently travels to various countries with celebrities and singers aboard her 157-foot yacht, Lady Joy.
In January, Rich put her Fifth Avenue Manhattan penthouse on the market, according to her real estate agency, Corcoran. The property, which boasts 20 rooms and 11 baths, is on sale for $65 million.
According to her spokeswoman Judy Smith, Rich renounced her citizenship because she wanted to live in London, where her long-time partner Peter Cervinka and her two daughters live.