A Spanish court has cleared singer Shakira of tax fraud charges, directing the government to refund over $87 million Cdn in fines and interest, as per court records. This verdict concludes a period of tax troubles in Spain for the Colombian superstar.
The court ruling pertains to a disagreement regarding the 2011 tax year, during which Spanish tax authorities failed to establish Shakira’s residency in Spain, stated the Madrid-based court. To be deemed a tax resident in Spain, an individual must spend more than 183 days in the country. The court noted that Spanish authorities could only confirm Shakira’s presence in Spain for a total of 163 days that year, prompting the Treasury to repay the singer the taxes and interest paid.
Spain’s Tax Agency contended that at that time, Shakira’s ties to the country through her relationship with retired soccer player Gerard Pique and her primary economic activities being based in Spain should establish her residency. However, the high court determined that the relationship did not legally equate to marriage, and it was not proven that Shakira’s main economic interests in 2011 were situated in Spain.
Shakira, through her legal representatives, emphasized there was no fraud, as the Tax Agency could not substantiate otherwise. The singer expressed relief over the court’s decision.
In response to the ruling, Shakira’s lawyer stated that the Treasury is obliged to reimburse the singer $95 million Cdn, inclusive of interest. The singer hopes this case sets a precedent for those facing similar circumstances. However, the Spanish Tax Agency intends to challenge the decision in the Supreme Court, delaying any payment until a final resolution is reached.
In a separate occurrence in November 2023, Shakira settled with prosecutors to avoid a trial in Barcelona concerning allegations of failing to pay around $23 million Cdn in Spanish income tax between 2012 and 2014. Under the agreement, she admitted the charges and agreed to pay a fine equivalent to half of the owed amount.
In recent years, Spanish tax authorities have intensified efforts against high-profile figures like soccer icons Lionel Messi and Cristiano Ronaldo for tax non-compliance. While both players were convicted of tax evasion, they evaded imprisonment due to a provision allowing judges to waive sentences under two years for first-time offenders.