Pop singer Shakira acquitted by Spanish court of tax fraud

A Spanish court has acquitted singer Shakira in a tax fraud case, ordering the government to return over $87 million Cdn in fines and interest, according to a court document.

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 she was a resident of Spain, the Madrid-based court said in its decision.

For a person to be considered a tax resident in Spain, that individual 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, said the court, which ordered the Treasury to reimburse the singer the tax paid plus interest.

Spain's Tax Agency argued that at the time, Shakira was tied to the country through a relationship with now-retired soccer player Gerard Pique and that she based her main economic activities in the country.

But the high court ruled that the relationship could not be legally equated to a marital one, nor was it proved that "the main centre or base" of Shakira's activities or economic interests in 2011 were directly or indirectly located in Spain.

"There was never any fraud and the Tax Agency itself was never able to prove otherwise, simply because it wasn't true," Shakira said in a statement provided by her lawyers.

Her lawyer said Spain's Treasury is to reimburse the singer $95 million Cdn, including interest.

"This resolution comes after an eight-year ordeal that has taken an unacceptable toll, reflecting a lack of rigour in administrative practices," José Luís 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."

The Spanish Tax Agency, however, said it would appeal the decision to the Supreme Court and no payment will be made until the final ruling.

In November 2023, Shakira separately reached a deal with prosecutors to avoid a trial in Barcelona over charges she failed to pay roughly $23 million Cdn 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.

Over the past decade or so, Spain's tax authorities have 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.