MADRID, Spain (AFP) — Colombian pop superstar Shakira has openly accused Spain’s tax office of seizing all the income she earned during her residence in the country, likening the agency’s actions to historical persecution by “the Inquisition”. This comparison was made in a strongly worded letter published by the Spanish daily, El Mundo.
The “Hips Don’t Lie” singer reached a notable settlement in 2023, which averted a trial in Barcelona concerning alleged tax fraud. In her letter, Shakira lamented, “The Spanish state kept more than all my income for those years.” She added, “It may seem incomprehensible, but for me, the Spanish decade was a lost decade financially, and not because I worked little, as everyone knows.”
In November 2023, Shakira managed to settle with prosecutors on the first day of her trial involving allegations that she had defrauded Spanish tax authorities of 14.5 million euros ($16 million) from income earned between 2012 and 2014. The settlement involved her accepting the charges and paying nearly 7.8 million euros to avoid a jail sentence. At that time, she explained her decision was made “with the best interest of my kids at heart,” aiming to “move past the stress and emotional toll of the last several years” and to refocus on her career.
Shakira’s statement highlights a longstanding contention, wherein she accused Spain’s tax authorities of being more concerned with “burning her in public” than truly considering her arguments. “You don’t solve things by burning people at the stake like in an Inquisition trial,” the 47-year-old star added.
A significant point of contention is Shakira’s claim that she did not reside in Spain for over 183 days a year between 2012 and 2014, which is the cut-off point that classifies a person as a taxable resident. To counter her claim, Spain’s tax office cited evidence gleaned from her social media activity and summoned testimonies from various individuals, including her hairdresser and neighbors, to back their case that she indeed stayed in Spain beyond this threshold.
In a turn of events favorable to Shakira, a Spanish court in May 2024 decided to dismiss a second probe into alleged tax fraud related to her 2018 income tax return, thereby closing the chapter on her legal battles in Spain.
Current circumstances see Shakira living in Miami with her two sons, following her separation from football star Gerard Pique, formerly of FC Barcelona.
Shakira’s situation underscores a broader clampdown by Spain on celebrities for unpaid taxes. High-profile cases involving Argentine football legend Lionel Messi and Portugal’s Cristiano Ronaldo have seen both stars convicted of tax evasion. They received prison sentences, which were waived due to their status as first-time offenders.
As Shakira’s experience highlights, scrutiny by tax authorities extends beyond financial repercussions, impacting public images and emotional well-being, and raising questions about global tax practices and their enforcement on high-earning individuals.
