Spanish singer Shakira has been cleared of tax fraud charges by a Spanish court, with a ruling that the government must reimburse over $87 million CAD in fines and interest. The decision comes after a lengthy period of tax-related issues for the Colombian music icon in Spain.
The court’s decision is based on a dispute concerning the 2011 tax year, during which Spanish tax authorities failed to establish Shakira’s residency in Spain. According to the Madrid court, an individual must spend more than 183 days in Spain to be considered a tax resident. The court noted that Shakira was only proven to have lived in Spain for 163 days that year, leading to the order for the Treasury to repay the singer the taxes paid with interest.
The Spanish Tax Agency contended that Shakira’s ties to Spain through her relationship with retired soccer player Gerard Pique indicated her residency. However, the court determined that the relationship did not equate to a marital union, and there was no proof that Shakira’s main economic activities were based in Spain in 2011.
Shakira, through her lawyers, stated that there was no fraud involved, and the Tax Agency failed to provide evidence to the contrary. Her lawyer mentioned that the Treasury is set to refund Shakira $95 million CAD, inclusive of interest, following the court’s decision.
Although Shakira expressed hope that the ruling would establish a precedent for individuals facing unjust treatment by the system, the Spanish Tax Agency plans to appeal the decision to the Supreme Court, postponing any payment until a final judgment is reached.
In a separate incident in November 2023, Shakira avoided a trial in Barcelona by reaching an agreement with prosecutors regarding charges of not paying approximately $23 million CAD in Spanish income tax between 2012 and 2014. As part of the deal, she admitted to the charges and agreed to pay a fine equal to half of the outstanding amount.
Spain’s tax authorities have been vigilant in pursuing tax evasion cases involving high-profile figures like soccer players Lionel Messi and Cristiano Ronaldo in recent years, although these players avoided imprisonment due to the option for judges to waive sentences under two years for first-time offenders.
