Spanish singer Shakira has been acquitted in a tax fraud case by a Spanish court, which has directed the government to refund over $87 million Cdn in fines and interest, according to a court document. This decision comes after several years of tax issues in Spain for the Colombian celebrity.
The court ruling pertains to a disagreement regarding the 2011 tax year when Spanish tax authorities failed to establish that she was a resident of Spain, as mentioned in the decision from the Madrid-based court. To qualify as a tax resident in Spain, an individual must spend more than 183 days in the country. The court noted that Spanish authorities could only confirm Shakira’s presence in Spain for a total of 163 days that year and ordered the Treasury to reimburse the singer for the tax paid along with interest.
Although Spain’s Tax Agency argued that Shakira had ties to the country through her relationship with retired soccer player Gerard Pique and conducted her primary economic activities there, the high court dismissed these claims. It stated that the relationship did not legally equate to a marital one and there was no proof that Shakira’s main activities or economic interests in 2011 were based in Spain.
Shakira, through her lawyers, emphasized that there was no fraud committed and that the Tax Agency failed to provide evidence otherwise. Her lawyer, José Luís Prada, stated that the Treasury is obligated to repay the singer $95 million Cdn, including interest, following an eight-year struggle that reflected deficiencies in administrative practices.
Shakira expressed hope that this ruling would serve as a precedent for individuals facing unfair treatment by the system. However, the Spanish Tax Agency intends to challenge the decision in the Supreme Court, delaying any payment until a final ruling is made.
In a separate agreement in November 2023, Shakira resolved a case with prosecutors to avoid a trial in Barcelona concerning allegations of not paying around $23 million Cdn in Spanish income tax between 2012 and 2014. She accepted the charges and a fine equivalent to half of the owed amount.
In recent years, Spain’s tax authorities have intensified efforts to tackle tax evasion among high-profile figures, including soccer stars like Lionel Messi and Cristiano Ronaldo. While these players were convicted of tax evasion, they avoided imprisonment due to provisions allowing judges to waive sentences under two years for first-time offenders.