Spanish court orders 55 mln euro tax refund to Shakira

Spanish court orders 55 mln euro tax refund to Shakira

MADRID
Spanish court orders 55 mln euro tax refund to Shakira

 

A Spanish court has ordered the tax authority to refund Colombian pop star Shakira more than 55 million euros ($64 million) improperly collected in a dispute over her 2011 taxes, according to a ruling seen on May 18.

The National Audience said tax authorities had failed to prove that the “Hips Don’t Lie” singer spent more than 183 days in Spain in 2011, the legal threshold requiring residents to pay personal income tax in the country.

“On the contrary, the court found that Shakira spent 163 days in Spain and that the tax authorities had therefore failed to prove that the singer had the centre of her economic interests in Spain,” according to the ruling issued last month which was seen by AFP on May 18.

The court ruled that Spain’s tax agency must return all amounts paid, plus legal interest, effectively cancelling multimillion-euro penalties and tax adjustments that had classified Shakira as a Spanish tax resident for that year.

Shakira welcomed the ruling, saying the court had “finally set the record straight” after years of “brutal public exposure, orchestrated campaigns to destroy my reputation, and sleepless nights that ultimately affected my health and my family’s wellbeing.”

“Every step of the process was leaked, distorted, and amplified, using my name and public image to send a threatening message to other taxpayers. Today, that narrative falls apart,” she added in a statement.

The total repayment exceeds 55 million euros and includes about 24 million euros in income tax, nearly 25 million euros in fines for what authorities had described as a “very serious” infringement, plus interest.

Spanish authorities also argued she lived in Spain more than 183 days per year between 2012 and 2014, accusing her of defrauding the tax office of 14.5 million euros earned during that period.

In 2023, Shakira reached a separate settlement with prosecutors to settle the case and avoid trial.

As part of the deal, she accepted the charges in exchange for paying a fine of nearly 7.8 million euros.

Spain’s tax office went through her social media posts to gather evidence that she had been in Spain for over 183 days per year.

Its lawyers summoned dozens of witnesses, including her hairdresser and neighbors to back their case.

Shakira compared the tax office investigation into her affairs to an “Inquisition trial,” saying in a 2024 letter published in Spanish daily El Mundo that authorities were more focused on “burning her in public” than listening to her arguments.