Court opens investigation against Shakira for tax fraud in 2018
Colombian singer facing trial for allegedly defrauding tax office €14.5m between 2012 and 2014
A court in Esplugues de Llobregat, a neighboring city south of Barcelona, opened an investigation against Colombian singer Shakira for two tax fraud crimes in 2018.
The public prosecutor's office considers two tax offenses: personal income tax (IRPF) and the wealth tax from 2018.
Shakira is facing trial for allegedly defrauding the tax office €14.5 million between 2012 and 2014 for saying that she used to reside outside of Spain when she was already living with her former partner and former FC Barcelona player Gerard Piqué in Barcelona. The court considers the artist to have lived in Catalonia between 2012 and 2014 and therefore should have paid taxes in Spain.
In that trial, Shakira faces eight years and two months in prison, a €23.7 million fine, and 18 years and one month without having any tax benefits.
The prosecution and the Spanish tax authorities understand that Shakira created several companies in tax havens to avoid paying taxes despite living for more than half a year in Spain. The judge believes that the singer did not pay taxes in 2012, despite living in the territory for 243 days, in 2013, when she spent 212 days in Spain, and in 2014 when Shakira stayed for 244 days.
The law stipulates that residents who live in Spain for 183 days or more must pay tax. The judge considers the other days "sporadic absences," therefore the pop star avoided paying €12.3 million in IRPF taxes and around €2.2 million in wealth taxes.
According to Shakira’s lawyers, the singer has no more debt with the Spanish tax agency as she already paid the requested €17.3 million that she owed. She paid "as soon as she learned the figure she had to pay to tax authorities," the lawyers explained.