A Spanish court has cleared singer Shakira of tax fraud charges, mandating the government to reimburse her over $87 million Cdn in fines and interest, as per court records. The ruling comes after a series of tax issues in Spain for the Colombian music icon.
The court’s decision is based on a disagreement concerning the 2011 tax year, where Spanish tax authorities failed to establish Shakira’s residency in Spain, stated the Madrid court. To qualify as a tax resident in Spain, an individual must spend more than 183 days in the country. The court noted that Shakira was only in Spain for a total of 163 days that year, leading to the order for the Treasury to repay the singer the taxes along with interest.
The Spanish Tax Agency contended that during that period, Shakira had significant ties to Spain due to her relationship with retired soccer player Gerard Pique and her primary economic activities in the country. However, the court dismissed these arguments, stating that the relationship did not equate to a marital bond, and it was not proven that Shakira’s main economic interests in 2011 were in Spain.
Shakira, through her lawyers, emphasized that there was no fraud involved, and the Tax Agency could not substantiate any claims otherwise. The singer expressed relief at the court’s decision, hoping it would serve as a precedent for individuals facing unjust treatment by the legal system.
Despite the ruling in Shakira’s favor, the Spanish Tax Agency plans to challenge the decision in the Supreme Court, delaying any reimbursement until a final judgment is reached.
In a separate legal matter in November 2023, Shakira reached an agreement with prosecutors to avoid a trial in Barcelona regarding accusations of not paying approximately $23 million Cdn in Spanish income tax between 2012 and 2014. She admitted the charges and agreed to pay a fine equal to half of the owed amount.
Recent years have seen Spanish tax authorities scrutinize high-profile figures like Lionel Messi and Cristiano Ronaldo for tax discrepancies. Although found guilty of tax evasion, these soccer stars managed to escape prison sentences due to a provision allowing leniency for first-time offenders with sentences under two years.