Pop star Shakira acquitted in Spanish tax fraud case

A Spanish court acquitted Shakira in a tax fraud case, ordering the government to return more than 55 million euros ($64 million) in wrongly imposed fines and interest, a court document seen Monday by The Associated Press said.

The decision follows years of tax troubles in Spain for the Colombian superstar.

The ruling relates to a dispute over the 2011 tax year in which Spanish tax authorities did not prove that the singer was a resident of Spain, the Madrid-based court said in its decision.

For a person to be considered a tax resident in Spain, she must spend more than 183 days in the country. Spanish authorities were only able to prove that Shakira lived in Spain that year for a total of 163 days, the court said.

Spain’s tax authorities have over the past decade or so cracked down on soccer stars like Lionel Messi and Cristiano Ronaldo for not paying their full due in taxes. Those players were found guilty of tax evasion but avoided prison time thanks to a provision that allows a judge to waive sentences under two years in length for first-time offenders.

The tax agency had argued that Shakira was linked to Spain through her relationship with former Barcelona star Gerard Pique and had her center of activities in the Mediterranean country.

But, acting on an appeal by the “Hips Don’t Lie” singer, the High Court ruled that the fines were unlawful.

The new ruling can still be appealed before the Supreme Court and does not affect tax years after 2011.

“This decision comes after an eight-year ordeal that has taken an unacceptable toll, reflecting a lack of rigor in administrative practice,” Shakira‘s lawyer, Jose Luis Prada, said in a statement.

The same statement quoted Shakira as saying she hoped the ruling would set a precedent for “thousands of ordinary citizens who are abused and crushed every day by a system that presumes them guilty and forces them to prove their innocence while facing financial and emotional ruin.”

In November 2023, Shakira reached a deal with prosecutors to avoid a trial in Barcelona over charges she failed to pay 14.5 million euros in Spanish income tax between 2012 and 2014.

As part of the agreement, she accepted the charges and a fine of half the amount owed — more than 7.3 million euros.

Source link