A Spanish court has cleared singer Shakira of tax fraud charges, directing the government to refund over $87 million Cdn in fines and interest, as per court records. This decision concludes a lengthy period of tax issues in Spain for the Colombian artist.
The ruling pertains to a disagreement concerning the 2011 tax year, during which Spanish tax authorities failed to establish Shakira’s residency in Spain, according to the court in Madrid. To be recognized as a tax resident in Spain, an individual must spend more than 183 days in the country.
The court noted that Spanish authorities could only confirm Shakira’s presence in Spain for 163 days that year, falling short of the required threshold. The court mandated the Treasury to reimburse the singer for the taxes paid along with interest.
Spain’s Tax Agency contended that Shakira had strong ties to the country in 2011 through her relationship with retired soccer player Gerard Pique and that she conducted her primary economic activities there. However, the court determined that the relationship did not equate to a marital one legally, and there was no evidence proving that Shakira’s main economic activities were based in Spain that year.
Shakira, represented by her legal team, stated, “There was never any fraud, and the Tax Agency itself could not substantiate otherwise because it was untrue.”
In a separate development, the Spanish Tax Agency intends to challenge the court’s decision at the Supreme Court, delaying any payments until a final ruling is reached.