A Spanish court has cleared singer Shakira of tax fraud allegations, instructing the government to refund over $87 million Canadian dollars in fines and interest, as per court records. This decision marks the resolution of years of tax issues faced by the Colombian artist in Spain.
The court ruling pertains to a disagreement concerning the 2011 tax year, during which Spanish tax authorities failed to demonstrate Shakira’s residency in Spain, according to the judgment from 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 highlighted that Spanish authorities only proved Shakira’s presence in Spain for a total of 163 days that year. Consequently, the court directed the Treasury to repay the singer the tax amount along with interest. The Tax Agency of Spain contended that Shakira’s ties to the country through her relationship with former soccer player Gerard Pique, and her primary economic activities were based in Spain during that time.
However, the high court ruled that the relationship did not legally equate to a marital bond, and there was no evidence that Shakira’s main economic interests in 2011 were directly or indirectly linked to Spain. In a statement provided by her legal team, Shakira asserted, “There was never any fraud, and the Tax Agency itself failed to prove otherwise because it was untrue.”
Shakira’s lawyer stated that the Spanish Treasury is obligated to reimburse the singer $95 million, including interest. Following an arduous eight-year legal ordeal, Shakira expressed hope that the ruling would establish a precedent for ordinary citizens who face unjust treatment within the legal system.
In response to the court’s decision, the Spanish Tax Agency announced plans to appeal to the Supreme Court, delaying any payment until the final ruling is reached. In a separate incident in November 2023, Shakira reached an agreement with prosecutors to avoid trial in Barcelona regarding charges of failing to pay approximately $23 million in Spanish income tax between 2012 and 2014. As part of the deal, she admitted to the charges and agreed to pay a fine equivalent to half of the owed amount.
Over recent years, Spain’s tax authorities have intensified efforts to tackle tax evasion, targeting prominent figures like Lionel Messi and Cristiano Ronaldo for underpayment of taxes. While both players were convicted of tax evasion, they avoided imprisonment due to a provision allowing judges to waive sentences under two years for first-time offenders.