Understand why Shakira goes to trial over tax evasion

Colombian singer Shakira will be tried in Spain for alleged tax evasion in a case dating back to 2018. A judge says the artist 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 R$74 million).

That’s what we know about the case.

The beginning of the Treasury v. Shakira

In December 2018, the Barcelona Prosecutor’s Office stated in a complaint filed against the Colombian artist that Shakira did not present the payment of the Personal Income Tax (IRPF) and Tax on Fortune (IP) corresponding to the years 2012, 2013 and 2014.

This caused economic damage to the Public Treasury of 12.3 million for the personal income tax and 2.19 million for the wealth tax, in this case to the Catalonia Tax Agency.

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

Shakira “frauded” taxes, says prosecutor

According to the document presented in 2018, which was accessed by CNN at the time, the artist “used a corporate structure to avoid taxation of income earned from her professional activity and her image rights”.

These companies that were part of the business network are located in places like 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 summoned Shakira to testify in the fraud case against the Treasury, at a hearing scheduled for June 12, 2019.

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

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

Shakira’s residency theme

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

According to the Spanish tax code, anyone residing 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 argued over what “main residence” means.

Spanish media reported that Shakira’s team argued that the singer’s primary residence was in the Bahamas in the years in question. But local media also said he has a home in the Barcelona area with his then-partner, FC Barcelona football defender Gerard Piqué, with whom he has two children.

Since 2015, Shakira’s official residence has been in Barcelona.

Shakira goes to trial

In July 2021, the prosecution and the singer failed to reach an agreement.

Thus, a judge at a court near Barcelona ruled that the Colombian singer could stand trial for alleged €14.5 million ($17 million) tax evasion in Spain, saying there was “sufficient evidence” to carry out the trial. .

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

*With information from Claudia Rebaza and Florencia Trucco from CNN Español