Shakira acquitted of tax fraud, court orders Spain to hand back $70 million

MADRID - Spain's High Court has acquitted Colombian pop star Shakira of tax fraud and overturned the 55 million euro ($64 million) fine imposed in 2021 by the Spanish tax agency, according to a court document seen by Reuters on Monday.

Acting on an appeal by the "Hips Don't Lie" singer, the court ordered the Treasury to reimburse her with over 60 million euros ($70 million), including interest, Shakira's defense said.

The judge ruled that authorities had failed to prove that Shakira spent more than 183 days in Spain in 2011, as required by Spanish law to be considered a tax resident in the country. It does not affect tax years after 2011.

At the time, the tax agency had argued that Shakira was linked to Spain through her relationship with former FC Barcelona footballer Gerard Pique and had her center of activities in the Mediterranean country.

But the High Court ruled that the fines were unlawful as they were "based on the assumption that the appellant's tax residence was in Spain for the 2011 fiscal year, a fact which has not been proven."

The tax agency said it would appeal with the Supreme Court and no payment will be made until the final ruling.

Shakira's lawyer, Jose Luis Prada, welcomed the court's decision in a statement, saying that it "comes after an eight-year ordeal that has taken an unacceptable toll, reflecting a lack of rigor in administrative practice."

The same statement quoted Shakira as saying she hoped the ruling would set a precedent for "thousands of ordinary citizens who are abused and crushed every day by a system that presumes them guilty and forces them to prove their innocence while facing financial and emotional ruin."

In November 2023, Shakira separately reached a deal with prosecutors to avoid a trial in Barcelona over charges she failed to pay 14.5 million euros in Spanish income tax between 2012 and 2014.

As part of the agreement, she accepted the charges and a fine of half the amount owed - more than 7.3 million euros. —Reuters