A Spanish court has cleared singer Shakira of tax fraud charges, instructing the government to refund over $87 million Cdn in fines and interest, as per court records. The ruling comes after years of tax difficulties in Spain for the Colombian music icon. The court decision is linked to a dispute concerning the 2011 tax year, where Spanish tax authorities failed to establish her residency in Spain, according to the Madrid-based court. 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 lived in Spain for a total of 163 days that year, leading to the order for the Treasury to reimburse the taxes paid along with interest.
Spain’s Tax Agency contended that Shakira had strong ties to the country through her relationship with retired soccer player Gerard Pique and conducted her primary economic activities there. However, the high court ruled that the relationship did not equate to a marital one under the law, and there was no evidence to support that her main economic activities in 2011 were directly or indirectly based in Spain.
Shakira, in a statement provided by her legal team, emphasized that there was no fraud involved, and the Tax Agency failed to prove otherwise. The singer’s lawyer stated that the Treasury is expected to repay Shakira $95 million Cdn, inclusive of interest. Shakira expressed hope that the ruling would serve as a model for ordinary citizens facing unjust treatment by the system.
Despite the court’s decision, the Spanish Tax Agency announced plans to challenge the ruling in the Supreme Court, and any payment will be withheld until the final judgment. In a separate agreement in November 2023, Shakira settled with prosecutors to avoid trial in Barcelona for allegedly evading approximately $23 million Cdn in Spanish income tax between 2012 and 2014. The settlement required her to admit to the charges and pay a fine equivalent to half the owed amount.
Recent years have seen Spanish tax authorities intensify efforts against prominent figures like Lionel Messi and Cristiano Ronaldo for tax irregularities. While both athletes were convicted of tax evasion, they avoided imprisonment due to a provision allowing judges to waive sentences under two years for first-time offenders.