Madrid, Spain. Spain’s High Court has acquitted Colombian pop star Shakira of tax fraud and overturned a 55 million euro ($64 million) fine imposed in 2021 by the Spanish tax agency, according to a court document seen by Reuters on Monday. The tax agency said it would appeal with the Supreme Court and that no payment will be made until a final ruling.
Court ruling and reimbursement order
Acting on an appeal by the “Hips Don’t Lie” singer, the court ordered the Treasury to reimburse her with more than 60 million euros ($70 million), including interest, Shakira’s defence said. The judge ruled that authorities had failed to prove Shakira spent more than 183 days in Spain in 2011, as required by Spanish law to be considered a tax resident, and said the ruling does not affect tax years after 2011.
Basis for the overturned fines
The tax agency had argued Shakira was linked to Spain through her relationship with former FC Barcelona footballer Gerard Pique and had her centre of activities in the country. The High Court ruled the fines were unlawful because 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”.
Reactions and separate 2023 agreement
Shakira’s lawyer, Jose Luis Prada, welcomed the decision in a statement, calling it the end of an “eight-year ordeal” that he said reflected a lack of rigour in administrative practice. The statement also 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, accepting the charges and a fine of more than 7.3 million euros.
What impact do you think the Supreme Court appeal could have on the timing of any reimbursement?