Singer Shakira has been acquitted in a tax fraud case by a Spanish court, which has mandated the government to refund over $87 million Cdn in fines and interest, as per a court document. This decision comes after a prolonged period of tax issues in Spain for the Colombian music sensation.
The verdict pertains to a disagreement concerning the 2011 tax year, during which Spanish tax authorities failed to establish Shakira’s residency in Spain, according to the court in Madrid.
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 in that year, leading to the order for the Treasury to reimburse the singer for the taxes paid plus interest.
The Spanish Tax Agency contended that Shakira had ties to the country through her relationship with retired soccer player Gerard Pique at the time, and that her main economic activities were based in Spain.
However, the high court ruled that the relationship did not legally equate to a marital one, and there was no evidence proving that the core of Shakira’s activities or economic interests in 2011 were situated in Spain.
“There was no fraud, and the Tax Agency itself could not substantiate otherwise, as it was not factual,” mentioned Shakira in a statement provided by her legal representatives.
Tax Agency to Challenge Verdict
Shakira’s lawyer stated that the Spanish Treasury is instructed to reimburse the singer $95 million Cdn, inclusive of interest.
“This resolution concludes an eight-year ordeal that has been unduly taxing, reflecting deficiencies in administrative practices,” remarked José Luís Prada in a statement.
The same statement quoted Shakira expressing her hope that the ruling would establish a precedent for “thousands of ordinary citizens who face abuse and oppression daily from a system that presumes their guilt and obliges them to prove innocence while enduring financial and emotional devastation.”
However, the Spanish Tax Agency announced its intention to challenge the ruling at the Supreme Court, delaying any payment until the final decision.
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Shakira admits to tax fraud in long-running Spanish case, gets suspended sentence
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Pop singer Shakira charged with tax evasion for a 2nd time by Spanish authorities
In November 2023, Shakira agreed to a settlement with prosecutors to avoid a trial in Barcelona over allegations of not paying approximately $23 million Cdn in Spanish income tax between 2012 and 2014.
As part of the agreement, she admitted to the charges and accepted a fine equivalent to half of the owed amount.
Over the past decade, Spanish tax authorities have cracked down on
