Shakira prevails in Spanish Court!
Madrid, May 18 (EFE).-
A Spanish Court annulled a fine for the 2011 tax year and ordered the Treasury to return approximately 60 million euros (70 million dollars) to the Colombian singer.
The National Court upheld the artist’s appeal against a previous resolution by the Tax Agency and the Central Economic Administrative Tribunal. The court also annulled the settlements and sanctions applied to income and wealth taxes for that year (2011).
According to the ruling, which can still be appealed, the Spanish administration did not prove that Shakira stayed in the country for over 183 days in 2011, which would have made her a resident for tax purposes and required her to pay Personal Income Tax (IRPF).
The case, which was settled through administrative channels, is limited to just over 55 million euros (64 million dollars) claimed from the singer.
However, her team estimates that the Treasury must return over 60 million euros, including interest and legal costs.
According to a statement from the communications agency Llorente y Cuenca, which represents Shakira, this is the last outstanding issue the artist had in Spain after eight years of disputes.
Sources from the Tax Agency recalled that Shakira had already accepted convictions for crimes against the Treasury for the years 2012–2014 and added that the sentence announced Monday will be appealed to the Supreme Court.
A few days ago, a Barcelona court dismissed the second criminal case against Shakira for alleged fraud of 6.6 million euros (7.7 million dollars) in 2018 after the Prosecutor’s Office and other plaintiffs requested it. They referred the singer to the administrative route to settle her tax obligations.
In 2024, Shakira accepted a fine of 7.8 million euros (about 9 million dollars) after admitting in court that she had defrauded the Treasury of 14.5 million euros (about 17 million dollars) between 2012 and 2014. The plea deal with the prosecution avoided a lengthy legal process that could have resulted in a prison sentence.
No “marital bond” with Gerard Piqué in 2011
Regarding 2011, the Tax Agency took action against Shakira, alleging that she had not paid income or wealth taxes.
The Treasury claimed that she was a tax resident in Spain at the time and was therefore obliged to pay these taxes.
The National Court’s main focus has been on where the Colombian singer lived in 2011 to conclude that “it has not been proven” that Shakira had her tax domicile in Spain at that time.
Therefore, the court ruled that the settlements and consequent sanctions imposed “are contrary to law.”
Specifically, the court determined that the artist stayed in Spain for 163 days, fewer than the required 183 days, and concluded that the administration had not proven that she had the core of her economic interests or family relationships in Spain.
The administration argued that Shakira was in a romantic relationship with a Spanish resident, former soccer player Gerard Piqué.
However, the court explained that there was no “marital bond” in 2011, as they never married, and there were no minor children residing in Spain. In other words, “there was no family unit for the legal purposes of a foreign person.”
Shakira laments the “public scrutiny she suffered”
As of Monday, Colombian singer Shakira celebrated that Spanish justice recognized that she “never” committed tax fraud with her 2011 income.
She also expressed sadness about the “public scrutiny” she endured and how she had been treated as “guilty” until now.
“The (Spanish) administration could never prove the opposite because it was not true,” Shakira said in a statement sent to the media by her legal team, Prada Tax Advisors firm.
Her lawyer, José Luis Prada, strongly criticized the Treasury’s approach, saying that it “suffocates many anonymous taxpayers who do not have the resources to defend themselves.”
He celebrated the fact that justice “really” works against “unacceptable administrative positions.” EFE nac-jl-mms/dgp
