Shakira Tax Trial Twist: In a surprising turn of events, international pop sensation Shakira has struck a last-minute deal on the opening day of her tax fraud trial in Barcelona, putting an end to nearly five years of maintaining her innocence and avoiding the risk of imprisonment.
On Monday, before the trial could fully unfold, Shakira informed the presiding magistrate, José Manuel del Amo, of her acceptance of the agreement with prosecutors. Confirming her acknowledgment of six counts of failing to pay the Spanish government 14.5 million euros (approximately $15.8 million) in taxes between 2012 and 2014, she uttered a resolute “yes.”
The trial, initially anticipated to span several weeks with over 100 witnesses, concluded abruptly after just eight minutes.
Under the terms of the deal, Shakira will receive a suspended three-year sentence and is obligated to pay a fine of 7.3 million euros ($8 million), in addition to settling the previously unpaid taxes and interest. An additional fine of 432,000 euros ($472,000) will be paid to waive her prison sentence.
Despite avoiding immediate imprisonment, Shakira now carries the label of being found guilty of tax fraud on her legal record, which may impact a separate pending tax case.
The crux of the fraud allegations revolved around Shakira’s residence during 2012-2014. Prosecutors in Barcelona argued that the Colombian singer, despite her official residence being in the Bahamas, spent more than half of that period in Spain. Consequently, they contended that she should have paid taxes on her global income in Spain, where tax rates are higher.
Initially facing a potential prison sentence of eight years and two months and a fine of 24 million euros ($26 million), Shakira opted for the agreement reached on Monday.
In a statement released by her public relations firm, Shakira expressed her initial desire to fight on but emphasized the need to prioritize her family, career, and peace of mind. She stated, “I need to move past the stress and emotional toll of the last several years and focus on the things I love, my kids and all the opportunities to come in my career.”
The multiple Grammy and Latin Grammy winner, who greeted a small crowd before entering the courthouse, acknowledged the difficulty of her decision. Her defense lawyer, Miriam Company, explained that the circumstances shifted, leading Shakira to choose acceptance over a protracted legal battle.
This development follows Shakira’s rejection of a deal offered by prosecutors in July 2022, where she asserted her belief in innocence and left the matter in the hands of the law. The details of that potential deal remained undisclosed.
Shakira’s name had surfaced in the “Paradise Papers” leaks, which exposed the offshore tax arrangements of prominent individuals, including musical celebrities like Madonna and U2’s Bono.
While this chapter appears to be closing, Shakira faces another tax-related challenge. In a separate investigation, Spanish state prosecutors charged her in September with alleged evasion of 6.7 million euros in taxes on her 2018 income, accusing her of using an offshore company to circumvent tax payments.
Shakira known for her hits in both Spanish and English across various genres, has encountered legal complexities with Spain’s tax office. Despite this, she expressed gratitude to her fans in Spain after triumphing at the Latin Grammy Awards gala in Seville, acknowledging their support through both good and challenging times.
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