Shakira wins $90 million payout in court victory over Spanish government’s tax claims
Madrid: A Spanish court acquitted Shakira in the tax evasion case and ordered the government to refund more than 55 million euros ($89.4 million) in fines erroneously imposed, a court document seen by The Associated Press said on Monday (Madrid time).
The decision came after the Colombian superstar had tax problems in Spain for years.
The Madrid-based court decision stated that the latest acquittal was related to the 2011 tax year, when Spanish authorities could not prove that the singer resided in Spain. A person must stay in Spain for more than 183 days to be considered a tax resident.
The court ruled that the Treasury should refund the tax plus interest paid to the singer, stating that Spanish authorities could prove that Shakira had only lived in Spain for 163 days that year.
The Spanish tax office argued that Shakira was affiliated with Spain due to her relationship with retired football player Gerard Piqué at the time and that she based her main economic activities in this country.
However, the Supreme Court ruled that the relationship could not be legally equated with a marital relationship and that it could not be proven that the “main center or base” of Shakira’s activities or economic interests in 2011 was directly or indirectly in Spain.
Shakira, who filed the appeal, said in a statement provided by her lawyers, “There was never any fraud and the Tax Office was never able to prove that this was not true.” he said.
Shakira’s lawyer said that the Spanish Treasury will pay the singer 60 million Euros ($97.5 million) in compensation, including interest.
“This decision follows an eight-year ordeal that took unacceptable toll, reflecting a lack of rigor in administrative practices,” his lawyer José Luís Prada said in a statement. he said.
In a separate tax fraud case in 2023, Shakira reached a deal with Spanish prosecutors to avoid a lawsuit over accusations that she failed to pay Spanish income taxes worth €14.5 million (about $23 million) between 2012 and 2014.
The singer pleaded guilty to the charges and had to pay 7.3 million euros (about $11 million) in addition to previously unpaid taxes and interest.
Hips Don’t Lie The singer’s name appeared in the 2017 “Paradise Papers” leaks, which detailed the offshore tax arrangements of several high-profile figures, including pop icons Madonna and U2’s Bono.
Spain’s tax authorities have been putting pressure on football stars such as Lionel Messi and Cristiano Ronaldo for the last decade for not paying their full tax debt.
These players were convicted of tax evasion but avoided prison time thanks to a provision that allowed the judge to waive sentences under two years for first-time offenders.
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