In Madrid, on May 18 (Reuters), Spain’s High Court cleared Colombian pop star Shakira of tax fraud, overturning a 55 million euro ($64 million) fine previously levied by the Spanish tax agency in 2021. This information comes from a court document reviewed by Reuters on Monday.
The court ruled in favor of the “Hips Don’t Lie” singer’s appeal, instructing the Treasury to refund her over 60 million euros ($70 million), including interest, as stated by Shakira’s defense team.
The judge determined that the authorities could not substantiate that Shakira was present in Spain for more than 183 days in 2011, the threshold needed under Spanish law to be considered a tax resident. This ruling does not pertain to tax years beyond 2011.
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During the case, the tax agency contended that Shakira’s ties to Spain were based on her relationship with Gerard Pique, a former FC Barcelona footballer, and that her main activities were centered in the country.
However, the High Court found these fines to be unlawful, as they were founded on the unproven assumption that Shakira’s tax residence was in Spain for the 2011 fiscal year.
The tax agency plans to appeal to the Supreme Court, and no payment will be issued until a final decision is made.
Shakira’s lawyer, Jose Luis Prada, expressed approval of the court’s decision, noting that it concludes an eight-year struggle that has imposed an undue burden, highlighting flaws in administrative practices.
In the same statement, Shakira expressed hope that this ruling would serve as 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 also reached an agreement with prosecutors to avoid a trial in Barcelona related to charges of not paying 14.5 million euros in Spanish income tax between 2012 and 2014.
As part of this agreement, she acknowledged the charges and agreed to a fine amounting to half of the owed amount, which exceeds 7.3 million euros.
