Shakira, one of the world’s most successful Latin music artists, has been cleared of tax fraud allegations in Spain. It was an eight year long legal dispute that attracted global attention. A Spanish court ruled in her favour. The court stated that prosecutors failed to prove she was officially a tax resident of Spain in 2011, which is the central issue of the case.
In addition, according to reports, Spanish authorities had accused the singer of avoiding millions of euros in taxes by claiming she lived outside Spain. But, allegedly spending most of her time in the country.
Generally, under Spanish law, anyone staying in Spain for more than 183 days in a calendar year is considered a tax resident and must pay taxes there.
However, the court concluded that Shakira spent around 163 days in Spain during 2011. Clearly, it was below the legal threshold required for tax residency.
Judges also noted that prosecutors could not establish that her primary economic interests were based in Spain at that time. Hence, the court dismissed the allegations against her.
Further, Spanish tax authorities were instructed to refund tens of millions of euros previously collected from the singer in penalties, fines, and interest payments. Reports estimate the amount to be more than €55 million.
Previously, the legal battle began years ago when Spanish prosecutors claimed Shakira failed to pay taxes between 2012 and 2014. The case became one of the most high profile celebrity tax disputes in Europe. Shakira consistently denied wrongdoing and insisted that she had complied with tax laws.
The singer expressed relief following the verdict and said that she had acted lawfully throughout. Her legal team also described it as a victory for justice and fairness.
Overall, Shakira has continued her music career throughout the lengthy court process while remaining under intense media scrutiny over her finances and personal life.
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