Entertainment

Shakira Acquitted of Tax Fraud in Spain

Is this a victory for justice or a distraction from the bigger issue of evasion?

Published MAY 18

Story

Above: Shakira attends the announcement of the FIFA World Cup Final Halftime Show in New York on May 14. Image credit: Taylor Hill/WireImage/Getty Images

The Facts

Spain's High Court has acquitted Shakira of tax fraud and overturned a 2021 fine of €55 million ($64 million), according to court documents obtained by the press on Monday.
Reuters
NBC
Lawyers for the Colombian pop star said that payment was expected to exceed €60 million ($70 million) as the court had ordered for interest on the fine to be paid as part of the reimbursement.
Reuters
Global Banking and Finance
The dispute roots back to 2011, when Spanish tax authorities accused the singer of being domiciled in the country for tax purposes.
Reuters
NBC
According to Spanish law, a person must be in Spain for more than 183 days to be considered a tax resident of the country. However, the judge in this case ruled that authorities could only prove Shakira's presence in Spain for 163 days that year.
The Associated Press
NBC
The ruling, which could be appealed at Spain's Supreme Court, is separate from a settlement in which Shakira accepted charges of under-paying taxes of $14.5 million ($16.9 million) for the years 2012 to 2014, for which she paid a fine of $7.3 million ($8.5 million).
Reuters
Global Banking and Finance

Sources Split

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RIGHT

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CRIT

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PRO
ESTAB

The Spin

Narrative A

This concludes a horrific smear campaign deliberately targeting Shakira over taxes the performer didn't owe. Even the National High Court criticized the tax agency for their conduct, as the organization clearly aimed to make an example out of someone to browbeat other taxpayers. This is a victory for justice.

Financial Times

Narrative B

This ruling was an isolated incident, and should not distract from the far bigger issue at hand — for too many of the rich and powerful do not pay their taxes. Even Shakira herself has accepted a fine for under-payment of tax. Complicated international rules should be standardized to avoid further cases like this, as the most vulnerable will suffer from national funds dwindling while many of the wealthiest continue to amass their fortunes.

The New Statesman

Tax Justice Network