Colombian pop sensation Shakira has reached an agreement with Spanish prosecutors to resolve a tax fraud case just as her trial was set to commence.
The singer has paid a €7.5 million (£6.5 million) fine, averting the possibility of an eight-year jail term and a €23.8 million (£20.8 million) fine, as initially sought by prosecutors in the event of a guilty verdict.
The allegations involved tax fraud amounting to €14.5 million (£12.7 million) in a Barcelona court.
Shakira, who has repeatedly denied any wrongdoing, said she settled “with the best interest of my kids at heart”.
In a lengthy statement, she said her children “do not want to see their mom sacrifice her personal well-being in this fight”.
Having declined an earlier settlement proposed by prosecutors, the artist chose to proceed with a trial. The focus of the case revolved around Shakira’s residence during the years 2012–2014.
“Throughout my career, I have always strived to do what’s right and set a positive example for others,” she said.
“Unfortunately, and despite these efforts, tax authorities in Spain pursued a case against me as they have against many professional athletes and other high-profile individuals, draining those people’s energy, time, and tranquillity for years at a time.
“While I was determined to defend my innocence in a trial that my lawyers were confident would have ruled in my favour, I have made the decision to finally resolve this matter with the best interest of my kids at heart who do not want to see their mom sacrifice her personal well-being in this fight.”
She added she needed to “move past the stress and emotional toll of the last several years and focus on the things I love – my kids and all the opportunities to come in my career”.
Dispute over residency
The focal point of the dispute revolves around Shakira’s residency status from 2012 to 2014, during which prosecutors asserted that she resided in Spain while officially declaring another location as her residence.
In accordance with Spanish law, individuals spending more than six months in the country are deemed residents for tax purposes. However, Shakira contends that Spain was not her primary residence during that period.
In July, prosecutors presented documentation claiming she purchased a house in Barcelona in 2012, which served as a family home for her and her then-partner, Barcelona footballer Gerard Piqué.
According to her legal representatives, a significant portion of her income until 2014 was derived from international tours, and she spent extended periods outside of Spain during this time.
“The Spanish tax authorities saw that I was dating a Spanish citizen and started to salivate. It’s clear they wanted to go after that money no matter what”, she told Elle magazine.
Shakira officially designated Spain as her tax residence in 2015, affirming that she has fulfilled her tax obligations by paying €17.2 million (£15 million) and has no outstanding debts.
In an unrelated case in 2019, Mr. Piqué received a fine of €2.1 million (£1.8 million) from the Spanish national court for tax evasion spanning the years 2008 to 2010.
The couple, who announced their separation in early June after 11 years, shares two sons aged seven and nine.