Shakira acquitted of tax fraud charges in Spain

The Spanish High Court has acquitted Colombian pop star Shakira of tax fraud charges and overturned a 55 million euro fine imposed on her by the Spanish tax authorities in 2021, according to a court document seen by Reuters.

Acting on an appeal by the "Hips Don't Lie" singer, the court ordered the Ministry of Finance to return more than 60 million euros to her, including interest, Shakira's defense said.

The judge ruled that the authorities had not proven that Shakira spent more than 183 days in Spain in 2011, which is a requirement under Spanish law for someone to be considered a tax resident of that country.

The tax authorities then claimed that Shakira was linked to Spain because of her relationship with former Barcelona footballer Gerard Pique and that she had the centre of her activities in that Mediterranean country.

The High Court, however, ruled that the penalties were unlawful because they were “based on the assumption that the appellant’s tax residence in the 2011 tax year was in Spain, which was not proven”.

The new ruling can still be appealed to the Supreme Court and does not apply to tax years after 2011.

"This decision comes after eight years of agony that has had an unacceptable cost and reflects a lack of rigor in administrative practice," said Shakira's lawyer, Jose Luis Prada.

The same statement quoted Shakira as saying that she hopes the verdict will set a precedent for "thousands of ordinary citizens who are abused and broken every day by a system that finds them guilty and forces them to prove their innocence while facing financial and emotional collapse."

In November 2023, Shakira reached a plea deal with prosecutors to avoid trial in Barcelona on charges that she failed to pay €14,5 million in income tax in Spain between 2012 and 2014.

As part of the agreement, she accepted the charges and a fine of half the amount she owed, or more than 7,3 million euros.