Shakira and Spanish prosecutors have settled their legal dispute.
She was accused of failing to pay more than €14.5 million (roughly $15.8 million) in taxes between 2012 and 2014. To avoid possible jail time, the 46-year-old singer agreed with the Spanish government. Shakira responded with a “yes” when questioned about the six charges of tax fraud.
Shakira is set to receive a suspended three-year sentence and is required to pay a fine of €7 million (equivalent to $7.6 million), as reported by AP News.
Shakira wants to focus on her kids and career
Shakira clarified on Monday that her children’s best interests are the reason she has decided to resolve this issue. She made it clear that her children did not want to see their mother jeopardize her health in this legal dispute.
Shakira said she needed to put the strain and emotional toll of the past few years behind her to concentrate on her love for her kids and her future professional prospects.
She said that, although she has the utmost respect for those who continue to fight against injustices of this kind, winning now means having more time for her children and career.
Shakira also mentioned that she has continuously tried to do the right thing and lead by example throughout her career. She attacked the Spanish tax authorities, saying they brought a case against her, just like they have done with numerous prominent people, including professional athletes.
She claimed that for years on end, this legal battle consumed all of their time, energy, and peace of mind.
Shakira blew kisses to fans before settling the tax fraud case
Shakira’s protracted legal battle over tax fraud has officially come to an end. On November 20, the first day of the trial in Barcelona, the music icon and Access Hollywood confirmed they had settled.
Shakira, who is accused of evading taxes by almost $15.8 million between 2012 and 2014, showed up in court wearing a pink suit and gave passersby a polite kiss.
Despite Shakira’s official residence being in the Bahamas, a country with significantly lower tax rates, Spanish authorities maintained that the singer spent the majority of that time in Spain. As such, they argued, her worldwide income entitled her to government taxes.
Spanish prosecutors accused Shakira of defrauding
Shakira was accused by Spanish prosecutors of fraud in 2018, claiming she was a resident of the Bahamas but was actually living in Catalonia.
This suggested that she owed money to the Spanish government. In July 2022, Shakira’s agent denied these allegations, describing them as a “total violation of her rights” in a statement to Reuters.
Shakira reiterated in the statement that she still believes she is innocent and that she will allow the legal system to resolve the matter.
Shakira confronted the lawsuit head-on and denied the accusations in a September 2022 Elle interview. She explained, “I didn’t spend 183 days a year [in Spain] at all,” referring to her packed itinerary of foreign business travel. Shakira continued, saying, “Even before they filed a lawsuit, I paid everything they said I owed.” I owe them nothing as of right now as a result.”
Shakira’s denial came shortly after breaking up with Gerard Piqué
Shakira quickly denied allegations that she had engaged in tax evasion shortly after her 12-year relationship with her longtime boyfriend, Gerard Piqué, came to an end in June 2022.
In the same Elle interview, she talked about the challenges following her breakup and her legal troubles, referring to them as some of the “most difficult, darkest hours” of her life. She acknowledged the difficulties her kids were facing and spoke of their struggles.
She has already settled one tax evasion case with the Spanish government, but she is currently facing two lawsuits for the same offense.
In September, Barcelonan authorities declared that Shakira had avoided paying taxes totaling €6.7 million ($7.1 million) that should have been paid in 2018 by using offshore companies based in tax havens. The legal proceedings concerning this matter commenced in July.