A Spanish court has cleared singer Shakira of tax fraud charges, instructing the government to refund over $87 million Cdn in fines and interest, as per a court document. This decision comes after several years of tax issues in Spain for the Colombian music icon.
The court ruling revolves around a disagreement concerning the 2011 tax year, during which Spanish tax authorities failed to demonstrate that Shakira was a resident of Spain, according to the court in Madrid. To be recognized as 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, leading to the directive for the Treasury to reimburse the singer the taxes paid plus interest.
While Spain’s Tax Agency argued that Shakira had strong ties to the country through her relationship with retired soccer player Gerard Pique and conducted her primary economic activities there, the high court dismissed this assertion. They ruled that the relationship did not legally equate to a marital one and there was no evidence proving that Shakira’s main activities or economic interests in 2011 were based in Spain.
Shakira’s legal representative stated that the Spanish Treasury is obligated to repay the singer $95 million Cdn, inclusive of interest. The singer expressed relief after an arduous eight-year ordeal, hoping the ruling would set a precedent for citizens mistreated by the system. Despite this, the Spanish Tax Agency intends to challenge the decision in the Supreme Court, delaying any payments until a final judgment is reached.
In a separate development in November 2023, Shakira reached an agreement with prosecutors to avoid trial in Barcelona regarding accusations of failing to pay approximately $23 million Cdn in Spanish income tax between 2012 and 2014. She admitted to the charges as part of the deal and agreed to pay a fine equivalent to half the owed amount.
Over recent years, Spanish tax authorities have intensified efforts to combat tax evasion among high-profile figures like Lionel Messi and Cristiano Ronaldo. While both soccer stars were convicted of tax offenses, they managed to evade imprisonment due to a provision allowing judges to waive sentences below two years for first-time offenders.
