A Spanish court has cleared singer Shakira of tax fraud charges, instructing the government to refund over $87 million CAD in fines and interest, as per court records. This ruling concludes a prolonged period of tax issues in Spain for the Colombian artist.
The court’s decision pertains to a disagreement regarding the 2011 tax year, during which Spanish tax authorities failed to demonstrate her residency in Spain, according to the Madrid court’s verdict. To be considered a tax resident in Spain, an individual must spend more than 183 days in the country. The court noted that Shakira was only proven to have resided in Spain for a total of 163 days that year, leading to the directive for the Treasury to repay the taxes with interest.
Spain’s Tax Agency contended that Shakira’s ties to the country through her relationship with retired soccer player Gerard Pique and her primary economic activities in Spain justified her residency status. However, the court dismissed this argument, stating that the relationship did not equate to a marital one, and it was not proven that her main economic interests in 2011 were centered in Spain.
Shakira’s legal representative mentioned that the Treasury is obligated to refund the singer $95 million CAD, including interest, after enduring an arduous eight-year process that showcased administrative deficiencies. Shakira expressed hope that this decision would establish a precedent for individuals facing unjust treatment by the system.
In a separate incident in November 2023, Shakira reached an agreement with prosecutors to avoid trial in Barcelona for failing to pay around $23 million CAD in Spanish income tax between 2012 and 2014. She admitted to the charges and agreed to a fine equivalent to half the owed amount.
Over recent years, Spanish tax authorities have been stringent on high-profile figures like soccer players Lionel Messi and Cristiano Ronaldo for tax discrepancies. Although found guilty of tax evasion, these athletes evaded imprisonment due to leniency provisions for first-time offenders with sentences below two years.
