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Spanish High Court Acquits Shakira of Tax Fraud for 2011, Orders Refund of Over €55 Million

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Spanish Court Acquits Shakira in €55 Million Tax Fraud Case

The Madrid-based High Court ordered the Spanish government to reimburse over €55 million ($64 million) in fines and interest, ruling that tax authorities failed to prove Shakira was a legal resident of Spain in 2011.

Key Ruling

The court's decision centered on the legal definition of tax residency in Spain. Under Spanish law, an individual is considered a tax resident if they spend more than 183 days in the country within a calendar year.

  • The court determined that the tax authorities only provided evidence that Shakira was present in Spain for 163 days in 2011.
  • Based on this calculation, the court ruled that she was not a tax resident for that year and ordered the Treasury to return the collected tax plus interest.

Tax Authority's Argument and Court's Response

The Spanish Tax Agency had argued that Shakira was a tax resident in 2011 due to her personal relationship with former FC Barcelona soccer player Gerard Piqué and the location of her primary economic activities.

  • The High Court ruled that Shakira's relationship with Mr. Piqué did not legally constitute a marriage.
  • The court further stated that the tax agency failed to prove that the center of her economic interests or activities was in Spain in 2011.

Statements

Shakira stated through her lawyers: "There was never any fraud, and the Tax Agency itself was never able to prove otherwise, simply because it wasn't true."

Her attorney, José Luís Prada, said: "This resolution comes after an eight-year ordeal that has taken an unacceptable toll, reflecting a lack of rigor in administrative practices."

Next Steps

The Spanish Tax Agency has stated it will appeal the ruling to the Supreme Court. The agency indicated it would not make the court-ordered payment until a final decision is reached.

Related Cases

  • Separate Settlement (2012-2014): In 2023, Shakira reached a settlement with Spanish prosecutors to avoid trial over separate charges of failing to pay €14.5 million in income tax between 2012 and 2014. She accepted the charges and paid €7.3 million in fines in addition to previously unpaid taxes and interest.

  • Other Celebrities: Spanish tax authorities have pursued other high-profile individuals, including soccer stars Lionel Messi and Cristiano Ronaldo. Those players were found guilty of tax evasion but avoided prison sentences due to a legal provision allowing sentences under two years to be waived for first-time offenders.

  • Paradise Papers: Shakira's name appeared in the 2017 "Paradise Papers" leaks, which documented offshore tax arrangements of high-profile individuals.