The “Wherever, Whenever” performer has consistently supported her loved ones, whether it’s her elderly father or her two sons, Sasha and Milan. Now, in consideration of her family, she has resolved her tax evasion dispute with the Spanish authorities.
As reported by PEOPLE, Shakira announced her decision to settle on the first day of her trial in Barcelona, Spain. The entire process took merely eight minutes to conclude. Despite maintaining her innocence, as per the BBC, she reached an agreement with the Spanish government.
Shakira was imposed a $7.6 million fine by the Spanish government and a three-year suspended sentence
Even though she settled the matter, the Colombian vocalist had been insisting on her innocence for close to five years, as per CBS. She conceded to the judge that she and the Spanish prosecutors had reached a resolution for the case.
Due to the settlement, Shakira publicly acknowledged that she neglected to pay the government €14.5 million in taxes between 2012 and 2014, which amounts to approximately $15.8 million for all six tax evasion charges, as stated by Spanish prosecutors.
As part of the arrangement, she was handed a three-year suspended sentence and a fine of €432,000 ($472,000). According to CBS, this legal proceeding could influence the outcome of another tax-related case she is involved in.
Meanwhile, as reported by PEOPLE, had Shakira chosen to go to trial and lost, she would have potentially faced a maximum of eight years in prison, along with a €24 million ($26 million) fine.
Moreover, it has been stated that Spanish prosecutors were fully prepared for a trial and had lined up over 100 witnesses to testify that Shakira was indeed residing in Spain during that period.
Spain’s rigorous residency and tax laws prompted the legal action against the Colombian singer
According to the BBC, Spanish legislation dictates that individuals who spend a minimum of six months in the country are recognized as tax-paying residents. As per Expatica, an individual is considered a Spanish resident after living in the country for at least 183 days, non-consecutively.
The authorities also take into account any business interests and family residing in Spain when determining residency status. Expatica elaborates that non-Spanish residents are also subject to certain taxes.
For individuals who fall short of the six-month threshold but reside in Spain, they would only be liable for taxes on their Spanish earnings. Even owning property in Spain without residing there would require the submission of documentation to the tax authorities.
How is Shakira involved in this? Despite her denial of meeting this threshold, prosecutors released a document alleging the purchase of a house. The Barcelona residence was deemed to be a base for her children and her then-partner Gerard Piqué.
Shakira’s legal team refuted the claim to the extent that until 2014, she predominantly traveled for work. They also stated that a substantial portion of her earnings was generated outside of Spain. According to the BBC, it was not until 2015 that she declared Spain her home. During that time, she purportedly paid €17.2 million ($18.8 million) in taxes. Reportedly, this left her with no outstanding debts to settle with the government.
Shakira confessed to agreeing to a deal to tend to her mental well-being after
A challenging couple of years
Addressing the court, the singer admitted her willingness to fight to demonstrate her innocence. Despite this, she had chosen to prioritize her children.
Shakira conveyed, “Although I was determined to vindicate my innocence in a trial that my legal team was confident would have ruled in my favor, I have decided to ultimately resolve this issue with the well-being of my kids at heart, who do not want to witness their mother compromising her personal welfare in this battle.”
She confessed that the recent years had exacted an “emotional toll” on her, expressing her desire to move “beyond the pressure.”
The Colombian vocalist added, “I need to surpass the stress and emotional toll of the recent years and direct my focus towards my passions — my children and the forthcoming opportunities in my profession, including my upcoming global tour and my new album, both of which I am extremely enthusiastic about.”
“I deeply respect those who have battled these injustices to the conclusion, but for me, today, triumph means reclaiming my time for my children and my career,” asserted Shakira.
Image Source: Shakira @ Instagram