Pop star Shakira is acquitted in a Spanish tax fraud case

Madrid — A Spanish court has acquitted Shakira of tax fraud and ordered the government to return more than 55 million euros ($64 million) in wrongly imposed fines, a court document seen by The Associated Press said Monday.

The decision comes after years of tax problems in Spain for the Colombian star.

The Madrid-based court said in its decision that the ruling relates to a dispute regarding the 2011 tax year in which the Spanish authorities failed to prove that the singer was resident in Spain.

In order to be considered a tax resident in Spain, a person must spend more than 183 days in the country.

The court said that the Spanish authorities were unable to prove that Shakira lived in Spain that year for only 163 days, and ordered the Treasury to compensate the singer for the tax paid plus interest.

The Spanish tax agency said that at the time Shakira was linked to Spain through a relationship with retired footballer Gerard Pique, and that her main economic activities were based in the country.

But the Supreme Court ruled that the relationship could not legally be equated with a marital relationship, and it was not proven that the “center or principal base” of Shakira’s activities or economic interests in 2011 were located directly or indirectly in Spain.

Shakira, who filed an appeal, said in a statement provided by her lawyers: “There was absolutely no fraud, and the tax agency itself could not prove otherwise, simply because it was not true.”

Shakira’s lawyer said that the Spanish Treasury will compensate the singer 60 million euros (about 70 million dollars), including interest.

Her lawyer, Jose Luis Prada, said in a statement: “This decision comes after an ordeal that lasted eight years and led to unacceptable losses, which reflects a lack of precision in management practices.”

In 2023, in a separate tax fraud case, Shakira reached an agreement with Spanish prosecutors to avoid prosecution on charges of failing to pay Spanish income tax worth 14.5 million euros (then $15.8 million) between 2012 and 2014.

The singer accepted the charges and had to pay 7.3 million euros (then $8 million) plus previously unpaid taxes and interest.

The “Hips Don’t Lie” singer was named in the 2017 “Paradise Papers” leak that detailed the offshore tax arrangements of several high-profile individuals, including pop icons Madonna and U2’s Bono.

Over the past decade or so, Spanish tax authorities have cracked down on football stars such as Lionel Messi and Cristiano Ronaldo for not paying their full tax dues. These players were convicted of tax evasion but avoided prison time thanks to a provision that allows a judge to waive sentences of less than two years for first-time offenders.