A Spanish court recently cleared Shakira of tax fraud, telling the government to return over 55 million euros (around $64 million) in wrongly imposed fines. This decision marks a significant turn in the singer’s lengthy tax issues in Spain.
The case hinged on the tax year of 2011, where authorities struggled to prove that Shakira was a tax resident. To be considered a tax resident in Spain, a person needs to live there for more than 183 days a year. The court found that Shakira only spent 163 days in the country that year.
The Spanish tax agency argued that her relationship with retired soccer player Gerard Piqué tied her to Spain and that she conducted her main business activities there. However, the High Court ruled that the relationship did not equate to legal residency. They also stated there wasn’t enough evidence to show her economic base was in Spain during that time.
Shakira expressed relief, stating, “There was never any fraud.” Her lawyer, José Luís Prada, noted that the case has been an “unacceptable toll” on her over the past eight years.
This ruling comes after Shakira reached an agreement with Spanish authorities earlier in 2023 regarding another case where she was charged with failing to pay 14.5 million euros (around $15.8 million) in income tax from 2012 to 2014. In that case, she paid approximately 7.3 million euros (around $8 million) in added fees and back taxes.
Historically, Spain has intensified its scrutiny of celebrities and athletes regarding tax payments. Figures like Lionel Messi and Cristiano Ronaldo faced similar legal challenges. Both soccer stars were found guilty of tax evasion but avoided harsh penalties because of special legal provisions for first-time offenders.
As the landscape around celebrity taxes continues to evolve, cases like Shakira’s highlight ongoing discussions about fairness, transparency, and the responsibilities of high-earning individuals. Recent trends on social media show public support for artists pushing back against tax claims they view as unfounded.
For more details on the evolving situation in Spain regarding celebrity taxes, check out this report from Reuters.
