Spain’s High Court clears Shakira of tax fraud and overturns multi-million euro penalty

Spain’s High Court has cleared Colombian pop star Shakira of tax fraud and annulled a €55 million ($64 million) penalty imposed by Spanish tax authorities in 2021, according to a court document.

Following an appeal by the “Hips Don’t Lie” singer, the court also ordered the Treasury to refund her more than €60 million ($70 million), including interest, her legal team said.

The judges found that authorities had failed to demonstrate that Shakira spent more than 183 days in Spain in 2011, the threshold required under Spanish law for someone to qualify as a tax resident. The ruling does not apply to subsequent tax years.

Tax officials had previously argued that she was effectively based in Spain because of her relationship with former FC Barcelona footballer Gerard Piqué and because her professional activities were centred in the country.

However, the High Court said the penalties were unlawful because they relied on an unproven assumption that she was a tax resident in Spain during the 2011 fiscal year.

The Spanish tax agency said it intends to appeal to the Supreme Court, meaning no payment will be made until a final decision is reached.

Legal team welcomes decision

Shakira’s lawyer, José Luis Prada, welcomed the judgment, describing it as the end of an “eight-year ordeal” and criticising what he called a lack of rigour in administrative practice.

Shakira said the ruling could set an example 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”, according to the same statement.

Separate settlement in Barcelona

Separately, in November 2023, Shakira reached a deal with prosecutors to avoid trial in Barcelona over allegations that she failed to pay €14.5 million in Spanish income tax between 2012 and 2014.

Under the agreement, she admitted the charges and paid a fine of more than €7.3 million, roughly half of the alleged debt.

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