Shakira will go to trial in Spain for alleged tax evasion, how did we get here?

(CNN Spanish) — Colombian singer Shakira will face trial in Spain for alleged tax evasion in a case dating from 2018. A judge says that the artist has defrauded the Spanish treasury but the singer denies these accusations.

The case dates back to 2018 when the Barcelona Prosecutor’s Office filed a complaint against Shakira for six crimes against the Public Treasury in which she is accused of defrauding more than 14 million euros (about 15.8 million dollars at that time).

This is what we know about the case.

The beginning of the case Treasury vs. Shakira

In december 2018 The Barcelona Prosecutor’s Office said in a complaint filed against the Colombian artist that Shakira did not submit the liquidation of the Personal Income Tax (IRPF) and Wealth Tax (IP) corresponding to 2012, 2013 and 2014.

This caused economic damage to the Public Treasury of 12.3 million for personal income tax and 2.19 million for wealth tax, in this case to the Agència Tributària de Catalunya.

Shakira said at that time that between 2012, 2013 and 2014 she did not reside in Spanish territory and that for this reason she had not carried out any activity or received any income in Spain.

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Shakira “evaded” taxes, says the Prosecutor’s Office

According to him document presented in 2018, accessed by CNN at the time, the artist “used a corporate structure to avoid taxation of the income received from her professional activity and her image rights” (Page 3). These companies that were part of the business network are located in places such as the British Virgin Islands, the Netherlands, Panama and Luxembourg.

“There is no debt,” says Shakira

In February 2019, the Superior Court of Justice of Catalonia quoted shakira to testify for the case of fraud against the Treasury, by June 12, 2019.

After appearing in court in Barcelona, ​​her communications agency said in a statement that the singer “has complied at all times, including in the period between 2011 and 2014, with her tax obligations in all those countries in which she has worked ( including the US) and does not owe any amount to the Spanish Treasury,” said Llorente y Cuenca.

Shakira’s representative agency said that before the lawsuit was imposed in 2018, “Shakira proceeded to pay the amount in full, in addition to providing exhaustive information to the Treasury. Therefore, there is currently no debt,” the communication adds.

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Shakira’s residency theme

The Shakira’s place of residence is key in this case.

According to the Spanish tax code, anyone who resides in this country for at least six months and one day (or 183 days) in a given year is responsible for paying taxes in Spain.

And Judge Marco Jesus Juberias, who filed the complaint, the Colombian lived more than 200 days in Spain in each of those three years (2012, 2013 and 2014), making her responsible for paying taxes in Spain.

In 2021, Juberias said that in the investigation so far, Spain’s tax agency and Shakira’s lawyers have argued over the meaning of “main residence.”

Spanish media reported that Shakira’s team argued that the singer’s main residence was in the Bahamas in the years in question. But local media also said that she has a house in the Barcelona area, with her then-partner, FC Barcelona soccer defender Gerard Piqué, with whom she has two children.

Since 2015 Shakira’s official residence is in Barcelona.

Shakira will go to trial

In July 2021, the prosecution and the singer did not reach an agreement.

So a judge in a court near Barcelona ruled that the Colombian singer could stand trial for an alleged 14.5 million euro ($17 million) tax evasion in Spain, saying there is “enough evidence” to hold trial. .

According to a statement released by the singer’s public relations team: “Shakira and her team consider that this case constitutes a total violation of her rights, since she has always shown impeccable behavior, as a person and taxpayer, and a total willingness to resolve any disagreements early on, even before the criminal process.

— With information from Claudia Rebaza and Florencia Trucco from CNN en Español.

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Shakira will go to trial in Spain for alleged tax evasion, how did we get here?