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Shakira found not guilty of tax fraud meaning Spain must now return $70 million

Spain’s High Court has acquitted Colombian singer Shakira of tax fraud, overturning a previous fine of 55 million euros ($64 million) imposed by the Spanish tax agency in 2021. The court ruled that the authorities did not provide sufficient evidence to demonstrate that Shakira spent more than 183 days in Spain in 2011, which is necessary under Spanish law to establish tax residency.

Following the ruling, the court mandated that the Spanish Treasury reimburse Shakira over 60 million euros ($70 million), including interest. The tax agency had argued that Shakira’s residency was linked to her relationship with former FC Barcelona player Gerard Pique, claiming that her primary activities were based in Spain. However, the High Court found the fines to be unlawful, stating they were founded on an unproven assumption regarding her tax residency for the 2011 fiscal year.

In response, the tax agency announced plans to appeal the decision to Spain’s Supreme Court, and no reimbursement will occur until a final ruling is made. Shakira’s attorney, Jose Luis Prada, expressed satisfaction with the court's decision, highlighting the prolonged nature of the legal proceedings as “an unacceptable toll” on Shakira.

Additionally, Shakira recently reached an agreement with prosecutors concerning charges of failing to pay 14.5 million euros in income tax between 2012 and 2014. As part of this settlement, she admitted to the charges and agreed to pay a reduced fine of over 7.3 million euros. This resolution underscores the ongoing scrutiny of tax matters involving high-profile individuals in Spain.

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