A Spanish court has cleared singer Shakira of tax fraud charges, instructing the government to repay more than $87 million Cdn in fines and interest, as per court documents.
This decision comes after a series of tax issues in Spain for the Colombian music icon.
The ruling revolves around a disagreement concerning the 2011 tax period, during which Spanish tax authorities failed to demonstrate Shakira’s residency in Spain, as outlined by the Madrid-based court ruling.
In Spain, an individual must spend over 183 days in the country to be considered a tax resident. The court determined that Shakira only resided in Spain for a total of 163 days that year, prompting the Treasury to refund the taxes paid by the singer along with interest.
The Spanish Tax Agency contended that during that period, Shakira’s ties to the country through her relationship with retired soccer player Gerard Pique and her primary economic activities being based in Spain should qualify her as a tax resident.
However, the court concluded that the relationship did not legally equate to marriage, and there was no evidence proving that Shakira’s main activities and economic interests in 2011 were directly or indirectly centered in Spain.
“There was no fraud, and the Tax Agency failed to provide any evidence because it was unfounded,” Shakira stated through her legal representatives.
Tax Agency Plans to Challenge Verdict
Shakira’s lawyer mentioned that the Spanish Treasury will reimburse the singer $95 million Cdn, including interest.
“This decision concludes an eight-year ordeal that has been extremely taxing, highlighting deficiencies in administrative procedures,” stated José Luís Prada in a release.
Shakira expressed her hope that this ruling would set a precedent for the fair treatment of “countless ordinary citizens who face mistreatment and financial distress in a system that presumes their guilt, forcing them to prove their innocence.”
Despite this, the Spanish Tax Agency confirmed its intent to challenge the ruling in the Supreme Court, with no payments to be made until the final decision.
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In a separate development in November 2023, Shakira agreed to a settlement with prosecutors to avoid a trial in Barcelona over allegations of failing to pay approximately $23 million Cdn in Spanish income tax between 2012 and 2014.
Under the terms of the agreement, she acknowledged the charges and agreed to pay half of the owed amount as a fine.
In recent years, Spain’s tax authorities have taken action against prominent figures like Lionel Messi and Cristiano Ronaldo for tax
