A Spanish court has ordered the tax authorities to return €55 million to Shakira after she was cleared in a long-running tax fraud case concerning her 2011 tax return. The Colombian pop star confessed to six tax fraud crimes in November 2023 for the years 2012, 2013, and 2014, accepting a suspended three-year prison sentence and a €7.3 million fine. However, Monday's ruling by the Audiencia Nacional Court in Madrid focused solely on 2011, the only year outside the prosecution time limit that was subject to administrative proceedings.
Court Ruling on 2011 Tax Residency
The court stated that authorities failed to prove Shakira spent the minimum 183 days in Spain in 2011 required for tax residency. The ruling noted that her stay amounted to 163 days and that the administration did not demonstrate her centre of economic interests or family ties in Spain. The court deemed it 'irrelevant' that the Bahamas, where she was officially a tax resident, was a tax haven at the time.
Shakira's Response
Shakira, who moved to Miami in 2023 after splitting from former Barcelona footballer Gerard Pique, said: 'After more than eight years enduring brutal public accusations, orchestrated campaigns to destroy my reputation, and entire sleepless nights that ended up affecting my health and my family's well-being, the Audiencia Nacional court has finally set the record straight.' She added: 'There was never any fraud, and the Administration itself was never able to prove otherwise, simply because it was not true.'
Legal Team's Statement
Her lawyer Jose Luis Prada commented: 'This ruling comes after an eight-year ordeal that has taken an unacceptable emotional toll on my client and reflects a lax administrative practice.' He praised the court's independence and noted that many taxpayers lack the resources to defend themselves against such actions.
Background of the Case
Shakira was on a world tour in 2011, performing 120 concerts in 37 countries. Her representatives stated she had no house, children, or business centre in Spain. Despite this, the tax agency pursued her for total earnings from the tour without deducting expenses, leading to significant losses and what they described as unfair persecution.
The singer had previously paid millions to the Spanish taxman in 2018 to launch an appeal, which culminated in Monday's victory. The Audiencia Nacional confirmed that the administration had not proven the required 183-day stay, and the €55 million must be returned.
