Colombian pop superstar Shakira has been fined seven figures as part of a deal that will allow her to avoid prison time while ending a lengthy fraud trial in Barcelona before it has even begun.
The singer, who has a net worth of around £240 million, will be fined £6.4 million (€7.3 million) for the six tax fraud offenses she admitted as part of the deal announced in court today. less than a third of the amount prosecutors were seeking.
She had already paid back the tax that Spanish officials had accused her of evading – which, plus interest, amounted to almost £15 million (17 million euros). She must also pay a fine of £378,000 to avoid prison.
The global superstar arrived at a Barcelona courthouse on Monday to attend the first day of her trial for allegedly defrauding the Spanish state of £12.5 million (€14.5 million) from income from 2012 to 2014.
Wearing a pink suit and sunglasses, the 46-year-old arrived outside the building just before 10am (0900 GMT). She blew a kiss to onlookers before walking up the court steps and disappearing calmly and relaxed into the building.
It was quickly announced that she had reached a plea agreement, and Shakira (full name: Shakira Isabel Mebarak Ripoll) informed the presiding judge that she had accepted the agreement reached with the prosecution.
In a statement, she maintained her innocence but said she made the decision to “spare my children when they see their mother sacrificing their well-being.”
“I admire immensely those who fought these injustices to the end, but for me, victory today means reclaiming my time for my children and my career,” she said.
However, in her statement she also criticized Spanish authorities for the prosecution, saying her case was similar to others in which authorities had taken action against “athletes and other prominent people.” Such cases, she said, “robbed these people of their energy, time and peace for years.”
Colombian singer Shakira has been fined £6.4 million as part of a deal with authorities in Spain to avoid prison and a £12.5 million tax fraud case
A screen in the press room of the Barcelona Provincial Court shows Shakira during the hearing
Judge Jose Manuel del Amo ordered Shakira to take the stand after lawyers involved in the case confirmed in open court that a settlement had been reached.
He asked the singer, dressed in her eye-catching pink suit: “Accept the allegations made against you and the new substitute sentences you face.”
Shakira replied, “I do.”
Mr. Manuel del Amo then confirmed that, in light of the settlement, he imposed on the artist a prison sentence of three years and six months for each of the six counts of tax fraud to which she had admitted.
However, he added that her prison sentence will be replaced by a fine, meaning she will not go to prison.
In a statement released by her representatives after the settlement was announced, the singer said: “Throughout my career, I have always strived to do the right thing and be a positive example for others.”
“This often means taking the extra step when making business and personal financial decisions to get the absolute best advice, including advice from the world’s leading tax authorities, PricewaterhouseCoopers International Limited and Ernst & Young Global Limited, who have been my advisors throughout the entire process .”
“Unfortunately and despite these efforts, the tax authorities in Spain have initiated proceedings against me, as they have already done against many professional athletes and other high-profile individuals, robbing these people of energy, time and peace of mind for years.”
“Although I was determined to defend my innocence in a trial that my lawyers were confident would have ruled in my favor, I made the decision to finally resolve this matter in the best interests of my children, which their children did not “Mom sacrificed her personal well-being in this fight,” she added.
“I need to overcome the stress and emotional strain of the last few years and focus on the things I love – my children and all the opportunities that come my way in my career, including my upcoming world tour and my new album, both of which I love.” I’m very excited about it. “I have great admiration for everyone who fought against these injustices until the end, but for me, winning today means reclaiming my time for my children and my career.”
The case should focus on how much time the singer, whose hit singles include “Hips Don’t Lie,” “Whenever, Wherever” and the 2010 World Cup song “Waka Waka,” spent in Spain between 2012 and 2014 spent.
Spanish authorities claimed Shakira – dubbed the queen of Latin pop – spent more than half of that time in Spain and therefore should have paid taxes in the country.
They said she moved to Spain after her relationship with former FC Barcelona star defender Gerard Pique became public in 2011, but maintained her official tax residence in the Bahamas until 2015.
In its indictment, prosecutors alleged that Shakira used “a number of companies” based in tax havens “with the intention of not paying taxes in Spain.”
Shakira was named in the “Paradise Papers” leaks, which detailed the offshore tax arrangements of numerous high-profile individuals, including music stars such as Madonna and U2’s Bono.
Shakira’s defense team, Barcelona-based firm Molins Defensa Penal, said in November 2022 that she did not spend more than 60 days per year in the country during the period in question, adding that she should have spent half the year in Spain are considered tax residents.
Her defense argued that she led a “nomadic life” much of the time from Barcelona while on a world tour in 2011 and then spent much time in the United States as a judge on the NBC television music talent show “The Voice.”
Shakira’s lawyers said she only moved permanently to Barcelona shortly before the birth of her second son in January 2015.
“I paid everything they said I had to pay before they even filed a lawsuit. So to this day I don’t owe them anything anymore,” she told Elle magazine in 2022.
According to a journalist from the AFP news agency, the 46-year-old, wearing a pink suit and sunglasses, entered the courthouse in Barcelona shortly before 10:00 a.m. (09:00 GMT) without speaking to the crowd of reporters waiting for her Arrival awaited the scene
Colombian actress Shakira leaves the square in Barcelona in a pink outfit
Spanish prosecutors disagreed, and investigating judge Marco Juberías wrote in 2021 at the conclusion of the three-year investigation into the allegations that he believed there was “sufficient evidence of criminality” to bring the case to trial.
Shakira defended her innocence when questioned by Juberías in 2019.
Last year she lost an appeal to have the case dismissed.
The public prosecutor’s office demanded a prison sentence of eight years and two months and a fine of almost 24 million euros for the singer.
Shakira’s PR firm said she had already paid off all her debts (€14.5 million) and a further €3 million (around £2.6 million) in interest.
Together with the €7.6 million fine and the €432,000 to avoid prison time, this amounts to around €25.5 million – meaning she ultimately paid back slightly more than prosecutors had asked for.
Shakira had rejected an offer from prosecutors to settle her case in July 2022, saying through her Spanish PR firm Llorente y Cuenca that she “believes in her innocence and chooses to leave the matter to the law.”
The details of this potential deal have not been disclosed.
Shakira announced her split from Pique in June 2022 after a decades-long relationship, ending the relationship of one of the world’s most famous celebrity couples. In April she moved to Miami with her two sons, Milan and Sasha.
Their high-profile trial was scheduled to last until December 14, with the court set to hear from nearly 120 witnesses.
Neither the artist nor her lawyer commented on weekend reports that she would agree to a last-minute deal with prosecutors to avoid the “damaging” trial.
The respected Spanish newspaper El Mundo made a sensational claim at the weekend that it was striking a deal to avoid legal action.
It says that “everything indicates” that the mother of two will not go to prison, saying: “In recent days, Shakira’s lawyers have intensified their contact, both in person and remotely, with representatives of the public prosecutor’s office and their representatives .” in the interests of the Spanish tax authority.
“It looks like both sides have agreed that the artist will admit her crime, pay a large fine and receive a prison sentence of less than two years, which she will not have to serve. She has no criminal record in Spain.”
Citing sources close to Shakira, she claimed she had committed no wrongdoing but wanted to avoid a long, high-profile trial that could damage her image.
Separate Spanish reports over the weekend said Shakira had summoned her legal team to a two-hour summit on Sunday evening at the former family home she shared with Pique to discuss the trial and a possible settlement.
Colombian singer Shakira’s lawyer, Miriam Company, speaks to the media on the day of Shakira’s trial on tax fraud charges in Barcelona, Spain, November 20
On November 20, media representatives gather in front of the Audiencia de Barcelona to cover Shakira’s trial for alleged tax fraud
Spain has cracked down on soccer stars like Lionel Messi and Cristiano Ronaldo over the last decade for failing to pay their tax debts in full.
The former Barcelona and Real Madrid stars were found guilty of tax evasion but both avoided prison after their sentences were suspended.
Shakira, whose full name is Shakira Isabel Mebarak Ripoll, has two children, Milan and Sasha, with Barcelona soccer star Gerard Pique.
The couple lived together in Barcelona before ending their 11-year relationship last year. Since then she has lived in Miami.
After her triumph at the Latin Grammy Awards gala in Seville on Thursday, Shakira thanked her fans in Spain for “being with me in good times and bad.”