Pop star Shakira is acquitted in a Spanish tax fraud case

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MADRID – A Spanish court has acquitted the famous Colombian singer Shakira in a tax fraud case. The court has ordered the government to return over 55 million euros (approximately $64 million) in fines that were wrongly imposed on her, according to a court document obtained by The Associated Press.

This ruling comes after years of legal troubles for Shakira in Spain. The case specifically revolves around the 2011 tax year, where the court determined that Spanish authorities failed to prove she was a tax resident in the country.

To be considered a tax resident in Spain, a person must live in the country for more than 183 days in a year. The court found that Shakira only lived in Spain for 163 days that year, leading to the decision that she was not liable for the taxes that were claimed.

The tax agency argued that Shakira was tied to Spain due to her relationship with retired soccer star Gerard Piqué and that most of her economic activities were based in the country. However, the High Court ruled that their relationship could not be classified as a legal marriage, and there wasn’t enough evidence to prove that her main activities were in Spain.

Shakira stated, “There was never any fraud, and the Tax Agency itself was never able to prove otherwise, simply because it wasn’t true.” Following the court’s decision, Spain’s Treasury is required to reimburse her about 60 million euros (almost $70 million), which includes interest.

Her lawyer, José Luís Prada, remarked that this resolution comes after an eight-year ordeal that has taken an unacceptable toll on Shakira, highlighting a lack of rigor in administrative practices.

In 2023, Shakira faced a separate tax fraud case, where she reached a deal with Spanish prosecutors to avoid trial over claims that she failed to pay 14.5 million euros (around $15.8 million) in taxes between 2012 and 2014. She accepted the charges and was required to pay 7.3 million euros (almost $8 million) in addition to the taxes owed and interest.

Shakira was also mentioned in the 2017 “Paradise Papers” leaks, which revealed the offshore tax arrangements of various high-profile figures, including pop stars like Madonna and Bono from U2.

Spain’s tax authorities have been cracking down on celebrities, including soccer stars like Lionel Messi and Cristiano Ronaldo, for tax evasion. These players were found guilty but avoided prison time due to legal provisions for first-time offenders.

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