A court in Spain has cleared singer Shakira of tax fraud charges, directing the government to refund over $87 million CAD in fines and interest. This decision comes after a prolonged period of tax issues in Spain for the Colombian artist.
The court ruling pertains to a disagreement concerning the 2011 tax year, where Spanish tax authorities failed to demonstrate Shakira’s residency in Spain. According to the Madrid-based court, an individual must spend more than 183 days in the country to be considered a tax resident. The court noted that Shakira was only proven to have resided in Spain for a total of 163 days that year, leading to the order for the Treasury to repay the singer the taxes paid along with interest.
Although Spain’s Tax Agency argued that Shakira’s relationship with retired soccer player Gerard Pique tethered her to the country and that her primary economic activities were based in Spain, the court ruled otherwise. It stated that the relationship did not equate to a marital one, and there was no proof that Shakira’s main economic interests in 2011 were in Spain.
Shakira’s lawyer announced that the Treasury is set to reimburse the singer $95 million CAD, inclusive of interest. The singer expressed hope that this ruling would serve as a precedent for individuals facing challenges within the tax system. However, the Spanish Tax Agency intends to appeal the decision to the Supreme Court, delaying any payments until a final verdict is reached.
In a separate incident in November 2023, Shakira reached an agreement with prosecutors to avoid a trial in Barcelona regarding allegations of failing to pay around $23 million CAD in Spanish income tax between 2012 and 2014. She admitted to the charges and agreed to pay a fine equivalent to half of the owed amount.
Notably, Spain’s tax authorities have been vigilant in pursuing tax compliance from prominent figures like Lionel Messi and Cristiano Ronaldo, who faced accusations of tax evasion but evaded imprisonment due to legal provisions allowing leniency for first-time offenders with sentences under two years.