Shakira could go to court over alleged 1/2 tax evasion
(CNN Spanish) — Colombian singer Shakira is on trial in Spain for alleged tax evasion in a 2018 case. A judge says the artist cheated the Spanish treasury, but the singer denies these allegations.
The case dates back to 2018, when Barcelona prosecutors filed a complaint against Shakira for six crimes against the Treasury, in which she is accused of defrauding more than 14 million euros (about $15.8 million at the time).
Here’s what we know about the case.
The beginning of the Treasury vs. Shakira case
In December 2018, in a complaint filed against the Colombian artist, the Barcelona Public Prosecutor’s Office said that Shakira failed to provide the liquidation of the income tax (IRPF) and wealth tax (IP) for 2012, 2013 and 2014.
This caused economic damage to the treasury of 12.3 million for income tax and 2.19 million for property tax, in this case for the Agència Tributària de Catalunya.
Shakira said at the time that she was not on Spanish territory between 2012, 2013 and 2014 and therefore did not carry out any activity or earn any income in Spain.
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Prosecutors say Shakira “evaded” taxes
According to the 2018 document, accessed by CNN at the time, the artist “used a corporate structure to avoid taxation of income from her professional activity and her image rights” (page 3). These companies that were part of the business network are located in places like the British Virgin Islands, the Netherlands, Panama and Luxembourg.
“There is no debt,” says Shakira
In February 2019, the Supreme Court of Catalonia summoned Shakira to testify in the fraud case against the Treasury for June 12, 2019.
Following a court case in Barcelona, her communications agency said in a statement that the singer “had complied with her tax obligations at all times, including between 2011 and 2014, in all the countries where she worked (including the United States) and owes the Spanish one.” Treasury no amount,” said Llorente y Cuenca.
Shakira’s representation said that prior to filing the lawsuit in 2018, “Shakira paid the amount in full and provided comprehensive information to the Treasury Department. Therefore, there are currently no debts,” the statement continues.
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Shakira’s residency theme
In this case, Shakira’s place of residence is decisive.
According to the Spanish Tax Code, anyone residing in that country for at least six months and one day (or 183 days) in any given year is subject to tax in Spain.
And Judge Marco Jesus Juberias, who filed the complaint, the Colombian lived more than 200 days in Spain in each of those three years (2012, 2013 and 2014), making her responsible for paying taxes in Spain.
In 2021, Juberias said that in the investigation so far, the Spanish tax authority and Shakira’s lawyers had disagreed over the meaning of “principal residence”.
Spanish media reported that Shakira’s team argued that the singer’s primary residence was in the Bahamas during the years in question. But local media also said that he has a house in the Barcelona area with his then-partner, FC Barcelona football defender Gerard Piqué, with whom he has two children.
Since 2015, Shakira’s official residence has been in Barcelona.
Shakira is brought to justice
In July 2021, prosecutors and the singer failed to reach an agreement.
For example, a judge in a court near Barcelona ruled the Colombian singer could stand trial in Spain over an alleged €14.5 million ($17 million) tax evasion, saying there was “enough evidence” to hold the trial.
According to a statement released by the singer’s PR team, “Shakira and her team believe this case is a total violation of their rights as she has always acted impeccably as a person and as a taxpayer and is absolutely willing to find a solution Differences of opinion early on, even before the criminal proceedings.
— With information from Claudia Rebaza and Florencia Trucco of CNN en Español.