The National Court has ruled in favor of Shakira in her latest tax dispute in Spain and has annulled the settlements and sanctions that the Tax Agency imposed on her for the 2011 financial year. The resolution now forces the Treasury to return more than 60 million euros to the singer, including interest and costs, according to the artist’s legal team.
According to the information collected by EFE, the ruling, which can be appealed before the Supreme Court, upholds the appeal presented by Shakira against the decisions of the Tax Agency and the Central Economic-Administrative Court (TEAC) related to the Income Tax and the 2011 Wealth Tax.
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The main argument of the National Court is that the Administration failed to prove that the artist remained in Spain for more than 183 days during that year, a requirement established by legislation to consider a person a tax resident in the country.
The Court concludes that Shakira did not reside in Spain in 2011
The fourth section of the Contentious Matters of the National Court concludes that “it has not been proven” that Shakira had her tax domicile in Spain during 2011.
According to the resolution, the singer’s stay in Spanish territory was 163 days and did not exceed the 183 legally required. Furthermore, the court considers that the Treasury was also unable to demonstrate that the artist had the main core of her economic or family interests in Spain.
The ruling also analyzes the romantic relationship that Shakira then had with Gerard Piqué, although it clarifies that in 2011 there was no “marital relationship” or “minor children” residing in Spain, so “there was no family unit for the legal purposes of a foreign person.”
The court also downplays the debate about the singer’s residence in the Bahamas and points out that whether or not the country was considered a tax haven is “irrelevant”, since the artist confirmed that she had spent more than 183 days outside of Spain.
For this reason, the Court considers that “the settlements” and the sanctions imposed “are contrary to Law.”
Treasury will appeal the sentence
After learning of the resolution, Shakira’s legal circle celebrated the ruling. “There was never fraud, and the Administration itself was never able to prove the opposite, simply because it was not true,” said the singer in statements sent by her law firm, Prada Tax Advisor.
The artist also expressed her hope that the ruling “sets a precedent for the Treasury” and regretted the “public signaling” suffered during these years.
For his part, his lawyer, José Luis Prada, criticized the “modus operandi” of the Tax Agency, considering that “it suffocates many anonymous taxpayers who do not have the resources to defend themselves.”
Despite the judicial setback, sources from the Tax Agency have confirmed that they will appeal the ruling before the Supreme Court.
Eight years of tax litigation in Spain
The resolution puts an end to the last major pending dispute between Shakira and the Treasury in Spain after several years of judicial and administrative conflicts.
Just a few days ago, a Barcelona court archived the second criminal case opened against the singer for an alleged tax fraud of 6.6 million euros corresponding to 2018, after both the Prosecutor’s Office and the other accusations requested the archive.
Furthermore, in 2024 the artist accepted the payment of a fine of 7.8 million euros after acknowledging tax fraud of 14.5 million between 2012 and 2014, under an agreement that avoided a trial and a possible prison sentence.
Gestha lowers the return to Shakira and denies that the ruling sets a precedent against the Treasury
For their part, the Technicians of the Ministry of Finance (Gestha) have reduced the amount that the Tax Agency should return to Shakira after the ruling of the National Court and place the figure at 27.4 million euros, plus legal interest, far from the more than 60 million calculated by the singer’s entourage.
The organization has explained that the judicial resolution exclusively analyzes the artist’s fiscal situation in 2011 and does not affect the years between 2012 and 2014, years in which Shakira was convicted of tax crimes related to personal income tax.
Furthermore, Gestha agrees with the Tax Agency in studying the ruling before deciding whether to file an appeal with the Supreme Court, especially in relation to the facts considered proven regarding the main core of the singer’s economic interests in 2011.
The Treasury technicians also reject that the ruling represents a negative precedent for the Tax Administration. “This ruling does not set a precedent” for the Treasury, they maintain, considering that the ruling analyzes “a unique residence situation in 2011.”
Along the same lines, Gestha emphasizes that the National Court does not appreciate bad faith in the actions of the Tax Agency and recalls that the order for costs derives from the ordinary application of the Law Regulating Administrative Litigation Jurisdiction when the appeal presented by the artist is upheld.
Finally, the organization has rejected the criticism included in the statement released by Shakira’s team, which denounced that many citizens are “abused and crushed by a system that presumes their guilt and forces them to prove their innocence.”
Faced with this, Gestha defends that Spanish tax regulations “are among the most guaranteeing” in the European environment and remembers that it is up to the Administration to prove the taxpayer’s guilt.