Shakira Acquitted in Spanish Tax Fraud Case

Singer Shakira has been acquitted by a Spanish court in a tax fraud case, with the court ordering the government to refund over $87 million Cdn in fines and interest, according to official court documents. This decision comes after a prolonged period of tax-related issues for the Colombian superstar in Spain.

The court’s ruling pertains to a dispute concerning the 2011 tax year, during which Spanish tax authorities failed to establish Shakira’s residency in Spain, as stated by the Madrid-based court in its verdict.

According to Spanish tax laws, an individual must spend more than 183 days in the country to be considered a tax resident. The court noted that authorities could only confirm Shakira’s presence in Spain for a total of 163 days that year, leading to the court’s directive for the Treasury to reimburse the singer for the taxes paid along with interest.

The Spanish Tax Agency contended that Shakira had strong ties to Spain in 2011 through her relationship with retired soccer player Gerard Pique and that she conducted her primary economic activities in the country.

However, the high court ruled that the relationship did not legally equate to a marital one and that there was no evidence proving that Shakira’s main activities or economic interests in 2011 were centered in Spain.

“There was never any fraud, and the Tax Agency itself could not substantiate any such claims because they were unfounded,” Shakira stated through her legal representatives.

Tax Agency to challenge the ruling

Shakira’s legal team announced that the Spanish Treasury is obligated to reimburse the singer $95 million Cdn, inclusive of interest.

“This resolution follows an eight-year ordeal that has had an unacceptable impact, reflecting a lack of rigor in administrative procedures,” stated José Luís Prada, the lawyer representing Shakira.

In the same statement, Shakira expressed her hope that this ruling would establish a precedent for countless ordinary citizens facing mistreatment within a system that assumes guilt and burdens them with proving innocence, often leading to financial and emotional devastation.

Despite the court’s decision, the Spanish Tax Agency declared its intention to appeal the ruling to the Supreme Court, indicating that no payment would be made until the final judgment.

In a separate incident in November 2023, Shakira reached a settlement with prosecutors to evade a trial in Barcelona concerning allegations of failing to pay approximately $23 million Cdn in Spanish income tax between 2012 and 2014.

Under the terms of the agreement, she admitted to the charges and accepted a fine amounting to half of the outstanding tax.

In recent years, Spain’s tax authorities have intensified their scrutiny on prominent figures like Lionel Messi and Cristiano Ronaldo for tax discrepancies. Although these soccer icons were found guilty of tax evasion, they avoided imprisonment due to a provision allowing judges to waive sentences under two years for first-time offenders.