Spanish tax authorities have levied fresh charges against Shakira, alleging that she failed to pay more than $7 million in taxes for a single year, as reported by the Associated Press. This marks the second time that the pop star has been accused of committing income and wealth tax fraud in Spain.
Key Points
- These new charges stem from an investigation that began in July. They claim that Shakira utilized an offshore holding company based in another country to evade payment of $7.1 million in Spanish taxes on her 2018 income.
- These charges coincide with another case in which Shakira is expected to stand trial this year. This case alleges that she did not pay $14.31 million in Spanish taxes between 2012 and 2014.
- During this period, Spain asserts that Shakira resided in the country with her then-partner, soccer star Gerard Piqué. However, Shakira contends that she spent the majority of the year travelling and did not qualify as a resident.
A representative for Shakira has not provided an immediate response to these new charges. However, in a statement made to Forbes in July, it was emphasized that Shakira had always acted in compliance with the law, guided by top tax experts.
Background Information
- Spain employs three criteria to determine tax residency: physical presence, the location of a spouse and children, and the country being the "centre of economic interest." Shakira and Piqué were together for 11 years before their 2022 separation and have two children together, who currently live with her in Miami.
- Shakira is scheduled to go to trial for the first tax case on November 20. The initial investigation began in February 2018 and contended that she should have paid taxes to the Spanish government on all her global income during her residence in Barcelona with Piqué. If found guilty, she could face imprisonment, although Spanish law allows first-time tax evaders to avoid jail if their imposed sentence is less than two years.
- Born in Barranquilla, Colombia, Shakira is the country's highest-selling artist of all time and has amassed wealth through various partnerships, including collaborations with Fisher-Price, Proctor & Gamble's 3D White, Activia yogurt, and Brazilian shoe brand Ipanema. She also served as a judge on NBC's The Voice.
Noteworthy Figure
Cristiano Ronaldo paid a total of $22 million in back taxes and fines to settle his own tax evasion case. He faced allegations of failing to pay 14.7 million euros ($16.5 million) in taxes between 2011 and 2013 while playing for Real Madrid. The allegations centered on the use of offshore companies to handle income related to image rights, a similar basis for accusations against fellow soccer stars Samuel Eto'o and Neymar.
Side Note
Tax evasion cases involving celebrities are not uncommon, both in the United States and internationally. Musicians like Chuck Berry, Lionel Richie, Prince, Ozzy Osbourne, Lil Wayne, and Mary J. Blige have all faced tax-related allegations. Reality TV personalities Todd and Julie Chrisley are presently serving prison sentences for bank fraud, tax evasion, and conspiracy to defraud the IRS, joining Teresa and Joe Guidice from The Real Housewives of New Jersey and Jersey Shore's Mike Sorrentino as convicted tax fraud offenders. Other stars who have served prison time for tax offenses include Wesley Snipes, singer Lauryn Hill, rapper Ja Rule, and former baseball player Pete Rose.
