
On Monday, the first day of her tax fraud trial in Barcelona, pop star Shakira, who had been defending her innocence for almost five years, made a last-minute agreement to save herself from facing jail time.
Shakira announced to José Manuel del Amo, the presiding magistrate, that she agreed with the settlement made with the prosecution. She responded “yes” to indicate that she was aware of six instances in which she neglected to pay 14.5 million euros (roughly $15.8 million) in taxes to the Spanish government between 2012 and 2014.
Shakira will get a fine of 7 million euros ($7.6 million) and a suspended sentence of three years under the terms of the agreement.
Instead, the trial was canceled after just eight minutes, sparing over 100 witnesses over the course of the next few weeks.
In July, prosecutors announced that they planned to seek an eight years and two months prison sentence as well as a fine of 24 million euros ($26 million) for the singer. The singer is well-known throughout the world for her hits in both Spanish and English across a variety of musical genres.
Shakira stated in a statement released by her PR company that she prioritized her family, career, and mental health over her desire to continue fighting.
“I have made the decision to finally settle this matter with the best possible outcome for my kids at heart who wouldn’t like to see their mom sacrifice her private well-being in this fight,” she explained. “I need to move past the stress with the emotional toll of the past few years and focus on the things that I love, my kids, and the numerous possibilities to come in my career.”
The location of Shakira, who is 46 now, at that time was crucial to the case.
The Colombian singer’s official residence was still in the Bahamas, but prosecutors in Barcelona claim that she spent more than half of that time in Spain and should have paid taxes on her worldwide income there. The Bahamas has far lower tax rates than Spain.
Before going inside the courthouse, the multiple Grammy and Latin Grammy winner gave a wave and a kiss to a small group of onlookers. She took a quick seat in front of the judges, with the defense and prosecution teams sitting on either side of her.
Defense attorney Miriam Company told reporters, “This has been a challenging choice that took time to reach.” “Her legal team had been preparing the trial and believed we could demonstrate her innocence, however, the circumstances changed and (Shakira) decided to accept the deal.”
Through her Spanish public relations company Llorente y Cuenca, Shakira declined an offer made by the prosecution to resolve her case in July 2022, stating that she “believes in her innocence and prefers to leave the issue in the control of the law.” The specifics of that proposed transaction remained undisclosed.
Shakira was mentioned in the “Paradise Papers” leaks, which exposed the offshore tax arrangements of a number of well-known people, including Madonna and Bono of U2.
Prior to this, Shakira’s PR company claimed that she had already paid off all of her debts, plus an extra 3 million euros, or roughly $3.2 million, in interest.
In November 2022, Shakira’s defense team, Molins Defensa Penal of Barcelona, stated that she had not spent more than 60 days in the nation during the relevant period and that, in order to be deemed a fiscal resident, she would have needed to have spent half of the year in Spain. In 2011, she went on a global tour that took her far from Barcelona, according to her defense, and after that, she spent a lot of time in the US serving on the jury for the NBC television music competition The Voice.
The investigating judge, Marco Juberías, concluded a three-year investigation into the charges in 2021, finding “sufficient evidence of criminality” to support a trial despite the disagreement of Spanish prosecutors. In 2019, Shakira asserted her innocence during Juberías’ interrogation.
Last year, her appeal to have the case dismissed was denied.
According to her defense team, Shakira registered her fiscal residency in Spain in 2014, coinciding with her oldest child’s enrollment in a Barcelona school, because she intended to spend more time there with her family.
After conducting an initial investigation, an investigative judge in Spain determines whether to proceed with a trial or to dismiss the case. If a first-time offender receives a sentence of less than two years in prison, the court may decide to waive their prison term.
Spanish state prosecutors accused Shakira in September of allegedly evading paying 6.7 million euros in taxes on her income from 2018 in a separate probe.
They said she avoided paying the tax by using an offshore company with its headquarters in a tax haven.
Over the past ten years, Spain has taken harsh measures against soccer players who haven’t paid their fair share of taxes, including Lionel Messi and Cristiano Ronaldo. Despite being found guilty of evasion, the former players for Real Madrid and Barcelona both avoided going to jail because their sentences were suspended.
With Barcelona soccer player Gerard Piqué, Shakira—full name Shakira Isabel Mebarak Ripoll—has two children: Milan and Sasha. Before calling it quits on their 11-year romance last year, the couple resided together in Barcelona. She has lived in Miami ever since.
Shakira expressed her gratitude to her Spanish fans for “being with me in the good times and the bad” after winning the Latin Grammy Awards gala in Seville on Thursday.