Colombian pop star Shakira recently made headlines when she agreed to a deal with Spanish authorities on the first day of a tax fraud trial in Barcelona, ultimately avoiding the risk of a prison sentence. The deal was reached to settle the charges against her for failing to pay the Spanish government 14.5 million euros (about $15.8 million) in taxes between 2012 and 2014. Under the agreement, Shakira received a suspended three-year sentence and a fine of 7 million euros ($7.6 million).
The trial, which was expected to include more than 100 witnesses, was called off after just eight minutes. Prosecutors had originally sought a prison sentence of eight years and two months, as well as a fine of 24 million euros ($26 million) for the Grammy-winning singer.
The case centered around Shakira’s residency during the period in question. Prosecutors alleged that she spent more than half of that time in Spain and therefore should have paid taxes on her worldwide income in the country, despite her official residence still being in the Bahamas.
Shakira’s defense lawyer, Miriam Company, explained that the decision to accept the deal was motivated by the singer’s desire to focus on raising her children and her professional career. This decision came after the defense team had prepared for trial and believed they could demonstrate her innocence.
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The singer, known for her hits in both Spanish and English, including various musical genres, had previously turned down a deal offered by prosecutors in July 2022, stating that she believed in her innocence and chose to leave the issue in the hands of the law.
Shakira was named in the “Paradise Papers” leaks, which detailed the offshore tax arrangements of numerous high-profile individuals. Despite her public relations firm’s assertion that she had paid all that she owed, the investigation into her tax affairs continued.
The defense team argued that Shakira did not spend more than 60 days a year in Spain during the period in question, maintaining that she could not be considered a fiscal resident. They also pointed out her significant time away from Spain, including participating as a judge on the NBC television music talent show The Voice.
Regardless, Spanish prosecutors disagreed, and following a three-year probe, the investigating judge determined that there was sufficient evidence of criminality for the case to go to trial.
In a separate investigation, Spanish state prosecutors charged Shakira with alleged evasion of 6.7 million euros in tax on her 2018 income, accusing her of using an offshore company based in a tax haven to avoid paying the tax.
Shakira, whose full name is Shakira Isabel Mebarak Ripoll, has two children with Barcelona soccer star Gerard Piqué. The couple previously lived in Barcelona before ending their 11-year relationship. Since then, Shakira has resided in Miami.
The legal battles and personal challenges have not stopped her from continuing to pursue her professional career. She recently triumphed at the Latin Grammy Awards gala in Seville, where she thanked her fans in Spain for their support in both good times and bad. Despite the legal turmoil, Shakira’s fans continue to stand by her, reflecting her enduring popularity and influence as a beloved music icon.
