A Spanish court has cleared singer Shakira of tax fraud charges, instructing the government to reimburse more than $87 million Cdn in fines and interest, according to court records. The ruling concludes a series of tax issues in Spain for the Colombian star.
The court’s decision pertains to a disagreement regarding the 2011 tax year, during which Spanish tax authorities failed to establish Shakira’s residency in Spain, as outlined by the Madrid-based court. To be recognized as a tax resident in Spain, an individual must spend over 183 days in the country. However, authorities could only prove that Shakira resided in Spain for a total of 163 days that year, prompting the court to order the Treasury to repay the taxes she paid along with interest.
The Spanish Tax Agency contended that Shakira was linked to Spain through her relationship with former soccer player Gerard Pique and that she conducted her primary economic activities in the country. Nevertheless, the high court determined that the relationship did not equate to a marital bond legally, and there was no evidence to support that Shakira’s main activities or economic interests in 2011 were based in Spain.
Shakira’s legal representative stated that the Treasury is obligated to reimburse the singer $95 million Cdn, including interest, following an arduous eight-year legal ordeal. Shakira expressed hopes that the verdict would establish a precedent for individuals facing unjust treatment by the system.
Despite the ruling, the Spanish Tax Agency plans to challenge the decision in the Supreme Court, delaying any payments until a final judgment is reached.
In a separate incident in November 2023, Shakira reached an agreement with prosecutors to settle allegations of failing to pay around $23 million Cdn in Spanish income tax between 2012 and 2014, thereby avoiding a trial in Barcelona. As part of the deal, she admitted to the charges and agreed to pay a fine equal to half of the outstanding amount.
In recent years, Spanish tax authorities have taken action against high-profile figures like Lionel Messi and Cristiano Ronaldo for tax evasion, with both players being convicted but avoiding imprisonment due to a provision allowing leniency for first-time offenders with sentences under two years.
