A Spanish court has absolved singer Shakira of tax fraud charges, instructing the government to repay more than $87 million Canadian in fines and interest, as per court documents. This verdict concludes years of tax issues in Spain for the Colombian music icon.
The case revolves around a disagreement concerning the 2011 tax year, during which Spanish tax authorities failed to establish Shakira’s residency in Spain, according to the court in Madrid. To qualify as a tax resident in Spain, an individual must spend over 183 days in the country. The court noted that evidence only showed Shakira’s presence in Spain for 163 days that year, leading to the ruling for the Treasury to refund the singer the taxes paid along with interest.
Despite claims by Spain’s Tax Agency that Shakira’s ties to the country through her relationship with retired soccer player Gerard Pique meant she was economically linked to Spain, the court rejected this argument. It stated that the relationship did not equate to a marital bond, and there was no proof that Shakira’s primary economic activities in 2011 were based in Spain.
Shakira, through her legal team, emphasized that there was no fraud involved, and the Tax Agency failed to substantiate any fraudulent activity. She expressed relief at the court’s decision and hoped it would serve as a precedent for individuals facing similar challenges in dealing with tax authorities.
Shakira’s lawyer disclosed that the Spanish Treasury is due to reimburse the singer $95 million Canadian, inclusive of interest. The legal representative criticized the prolonged legal battle, highlighting flaws in administrative procedures that had taken a toll on Shakira. Despite the ruling, 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 incident in November 2023, Shakira reached an agreement with prosecutors to avoid a trial in Barcelona regarding allegations of not paying approximately $23 million Canadian in Spanish income tax between 2012 and 2014. She accepted the charges and agreed to pay a fine equivalent to half of the outstanding amount.
In recent years, Spain’s tax authorities have intensified efforts to address tax evasion among high-profile individuals, including soccer stars like Lionel Messi and Cristiano Ronaldo. While these athletes were convicted of tax evasion, they avoided imprisonment due to a provision allowing judges to waive sentences under two years for first-time offenders.
