Barcelona, Spain – Colombian pop star Shakira, whose full name is Shakira Isabel Mebarak Ripoll, found herself in the dock on the opening day of her tax fraud trial in Barcelona. The high-profile case alleged that she failed to pay the Spanish government €14.5 million ($15.8 million) in taxes between 2012 and 2014.
The Trial and Settlement
Shakira, who had maintained her innocence for nearly five years, struck a last-minute deal with Spanish prosecutors to avoid the risk of going to prison. On the first day of the trial, she accepted an agreement that included acknowledging six counts of failing to pay taxes and agreeing to pay a fine of €7.3 million ($8 million) in addition to the previously unpaid taxes and interest.
Under the deal, Shakira received a suspended three-year sentence and agreed to pay another fine of €432,000 ($472,000) in exchange for having her prison sentence waived. However, it is worth noting that she now has a guilty verdict for tax fraud on her legal record, which could impact another pending tax case.
Background of the Case
The tax fraud allegations against Shakira centered around her residency status during the years in question. Prosecutors argued that she spent more than half of the period from 2012 to 2014 in Spain and should have paid taxes on her worldwide income there, despite her official residence being in the Bahamas. The Bahamas has significantly lower tax rates compared to Spain.
Shakira’s Defense and Previous Offer
Shakira’s defense team argued that she did not spend more than 60 days a year in Spain during the period in question, and therefore should not be considered a fiscal resident. They pointed out that she was on a world tour in 2011 and spent a significant amount of time in the United States as part of her role as a jury member on the television show The Voice.
In July 2022, Shakira turned down a previous deal offered by prosecutors, stating her belief in her innocence and her decision to leave the matter in the hands of the law. The details of that potential deal were not made public.
Implications and Future Cases
While Shakira has resolved this particular tax fraud case, she still faces another investigation by Spanish state prosecutors. In September of this year, she was charged with alleged tax evasion of €6.7 million ($7.1 million) on her 2018 income. The prosecutors accused her of using an offshore company based in a tax haven to avoid paying taxes.