Shakira, a Colombian singer, and global superstar will be put on trial for alleged tax fraud, a Spanish judge ruled on Tuesday. This development arrives after the singer and the Spanish government failed to reach an agreement this summer. In July, Shakira issued her first public statement on the matter: “The prosecutor’s office has resorted to wrongful means to apply pressure—just as they do daily and unjustly with thousands of taxpayers for profit.”
What are the charges?
The Spanish government has charged Shakira with defrauding the country of 14.5 million euros in taxes (roughly $13.9 million) between 2012 and 2014. Three independent government organizations have accused her of six fiscal offenses. The crux of the argument lies in whether the singer lived in Spain during that time—or technically spent more than 183 days in the country—which would qualify her as a Spanish resident for tax purposes.
Shakira claims, however, that she was a resident of the Bahamas during that time period. She relocated to Barcelona in 2015, where she previously resided with her ex-partner, FC Barcelona soccer player Gerard Piqué. The Spanish government first made accusations of tax fraud against the musician in 2018.
Technically, the state concluded its investigation in July 2021, but Shakira’s defense filed an appeal to try to stop the trial, which they lost. Had the defense accepted the plea and returned the money—essentially admitting guilt—the prosecution would have significantly reduced or dropped the prison sentence.
If convicted of all counts, the artist would face a jail sentence of eight years and two months as well as a fine of 23.7 million euros. The prosecution has indicated that the alleged crimes are extremely serious because they claim that Shakira utilized corporations in a tax haven to hide her income.
How has Shakira responded?
All tax fraud claims against Shakira are categorically denied. In an interview with Elle magazine last week, the Grammy winner revealed that she refused to settle with Spanish authorities since she could prove that she was not a resident of the nation during that three-year era.
“I have to fight for what I believe; because these are baseless accusations,” Shakira told Elle. “First of all, I didn’t spend 183 days each year at that time at all. I was busy fulfilling my professional commitments around the world.”
Second, even before they filed a lawsuit, I paid everything they claimed I owed, she added. “So as of today, I owe zero to them. Last but not least, PricewaterhouseCoopers, one of the four largest tax consulting firms in the world, gave me advice, giving me assurance that I was proceeding honestly and correctly from the start.
The singer claimed that the prosecutors used a “salacious press campaign” to try to sway public opinion and that they were aware that the damage to their reputation might pressure her into signing a settlement deal.
It is generally known that the Spanish tax authorities frequently treat average taxpayers unfairly in addition to celebrities like me (or [Cristiano] Ronaldo, Neymar, [Xabi] Alonso, and many more). But I’m sure that I have sufficient evidence to make my case, and I believe that justice will be served in my favor.
What happens next?
Despite being found guilty of tax evasion, Cristiano Ronaldo and Lionel Messi avoided prison time thanks to a rule that permits judges to suspend sentences of up to two years for first-time offenders. The two parties discussed reducing the prison term to two years and the possibility of the prosecution agreeing to postpone the punishment’s execution for Shakira. When the defense rejected the deal, that option was no longer an option.
Despite the fact that the trial’s start date has not yet been determined, this choice signals that Shakira must now go on trial. After receiving the required paperwork from both parties, according to Barcelona judge Ana Duro, the trial will begin.
However, there is still a chance of a deal being made up until the trial’s actual day. The singer won’t be subjected to any preventative measures, such as home arrest, the judge has decided.
