According to news reports, international musical sensation Shakira will avoid paying an impending $15 million trial resulting from tax fraud charges in Spain, sources out of Barcelona confirm. The pop star, who hails from Columbia, was scheduled to be tried in Barcelona in connection with tax fraud allegations from 2012 – 2014.
While the exact reasoning for choosing a settlement with the Spanish government will remain private, the singer had made it clear she believed she was not to blame for these allegations. By settling the case, Shakira will avoid a nearly $15 million trial, as well as a potential three-year prison sentence. Instead, the singer will pay around 7.5 million euros to Spain, half the amount alleged in the charges.
What Was Shakira Charged With?
Shakira was initially charged with tax evasion in December 2018, resulting in the Spanish government’s claim that the singer avoided paying more than $15 million in taxes from 2012 – 2014, despite residing in the country for the majority of this time.
Notably, Shakira listed her primary residence as the Bahamas during the 2-year stint with the alleged tax evasion occurred. However, sources eventually tipped authorities in Spain off to the fact that the pop was indeed living in the country during this time, causing them to investigate inconsistencies in the singer’s tax filings further.
According to Spanish law, a resident is considered domiciled in the country if they have lived there for at least half of the year. Authorities argued that this was the case for Shakia, making her claim of residency in the Bahamas a false premise, resulting in tax evasion charges.
Before settling the case, Shakira was set to stand trial in Barcelona in November. Now, the singer will be free to continue her musical career without the looming threat of a potential three-year stay in a Spanish prison.
The Alleged Tax Fraud: A Complete Timeline
2012 – 2014: Shakira Claims Residency In The Bahamas
Originally born and raised in Columbia, Shakira is renowned in the international music scene, with fans spanning across every continent. As of 2012, Shakira lived with her long-time partner, Gerard Pique, a former professional soccer star. Together, the pair shared two children.
While Shakira’s residence is hotly debated during this period, the Spanish government claimed to have sufficient evidence to suggest that the singer and her family were living in Spain for at least half of the year from 2012 to 2014, despite the fact that she listed her official residence as the Bahamas.
In rebuttal, Shakira’s team has insisted that she did not spend enough time in Spain to warrant these charges and states the singer was paying taxes to officials in the Bahamas at the time.
December 2018: Spanish Authorities Issue Tax Evasion Charges
In 2018, Spanish authorities officially charged Shakira with tax evasion, asserting that she owed the government more than $15 million in unpaid taxes. In addition to paying these penalties, the pop star would face nearly $500,000 in fines and could potentially serve a maximum of three years in federal prison.
July 2022: Shakira Rejects An Initial Settlement Offer
However, Shakira did not initially accept these allegations. In July 2022, it was reported that the singer and her team rejected a potential settlement from the Spanish authorities. As recently as August 2022, her publicist stated that they continued to believe that the singer had done nothing wrong.
September 2022: The Singer Is Ordered To Stand Trial
With no settlement in place, Shakira was ordered to stand trial in Barcelona starting on November 20th, 2023.
November 2023: The Case Is Settled
Just days before the trial was set to begin, Spanish authorities announced they had reached a settlement with the singer, accepting nearly half the amount of money owed in exchange for avoiding any potential jail time.
Shakira Speaks Out, Cites “Personal Issues”
Despite her team’s insistence that she had done nothing wrong, Shakira addressed the judge in court and acknowledged that she fully accepted the charges against her. When asked about the reasoning behind her sudden settlement, the singer stated, “This decision to reach a deal responds to personal, emotional, and sentimental reasons that have nothing to do with legal.”
Inside sources say that while the singer was prepared to defend her case, she ultimately made the decision to focus on her children and her music. “I have reached the conclusion that winning is not a victory if the price is that they rob you of so many years of your life,” she admitted in a statement.
What’s Next For Shakira?
With the tax evasion charges behind her, Shakira plans to continue moving forward and has shown no signs of slowing down in her career amid years of legal turmoil. Just days before the start of the trial, the singer won two Latin Grammy Awards. Clearly, her diverse fanbase has continued to throw their support behind the international star.
As for her personal life, the singer very publicly separated from Pique in 2023 after an explosive cheating scandal that rocked the entertainment world. Since exposing her ex-partner’s infidelity, Shakira has relocated to Miami, where she continues to focus on her family.
Unfortunately, this recent settlement may not be the end of the pop star’s legal troubles, as she and Pique face several ongoing arguments around the custody of their children. In December 2023, the soccer legend successfully forced the sale of the couple’s previous home in Barcelona.
As for Spanish authorities, there certainly seems to be an increasing trend of celebrity tax fraud cases in the country. In just the last few years, the government has brought tax evasion charges against many soccer stars, including Cristiano Ronaldo and Lionel Messi, both of whom settled their cases for reduced fines. One thing is for certain: musicians, athletes, and average citizens alike should practice extreme caution in their tax preparation efforts.
