Shakira, of 'Hips Don’t Lie' fame, found herself in legal hot water earlier this summer. The singer was accused of not paying the Spanish government €14.5 million (£12.2m) in taxes between 2012 and 2014, with prosecutors seeking an eight-year prison sentence as well as €24 million (£20.2m) in fines if she was found guilty.
Currently, Shakira’s net worth is reported at $300million and the singer has sold over 80 million records worldwide. But our favourite raspy-toned pop princess maintains she didn’t live in Spain during the height of her single-selling success and therefore doesn’t owe them any money.
As such, Shakira rejected a settlement deal from the prosecutor’s office at the end of July 2022 and chose to go to trial instead. However, just before the trial was set to take place, Shakira settled a new deal with her prosecutors.
The Shakira tax fraud case explained
Shakira's trial was supposed to commence on 20 November in a court in the city of Barcelona (where Shakira lived with ex-partner Gerard Pique), with 12 sessions set to take place across November and December.
Instead, the singer has paid a €7.5m fine and no longer faces eight years in jail or a €23.8m fine.
Despite mass confusion caused on TikTok earlier in the summer after users started overlaying audios of Shakira singing with footage behind bars, Shakira is not going to jail.
‘Omg y’all, Shakira's singing in her cell again period’ wrote one account, and another added, ‘Shakira is giving our jail a free concert.' ‘Gurl cell 3A got front row they’re so lucky,’ one commenter replied. ‘She’s singing She Wolf y’all, she’ll break free,’ chimed a second.
Following the settlement, Shakira released a lengthy statement: 'Throughout my career, I have always strived to do what's right and set a positive example for other.
'Unfortunately, and despite these efforts, tax authorities in Spain pursued a case against me as they have against many professional athletes and other high-profile individuals, draining those people's energy, time, and tranquillity for years at a time.
'While I was determined to defend my innocence in a trial that my lawyers were confident would have ruled in my favour, I have made the decision to finally resolve this matter with the best interest of my kids at heart who do not want to see their mom sacrifice her personal well-being in this fight.'
The singer added that she wanted to 'move past the stress and emotional toll of the last several years and focus on the things I love - my kids and all the opportunities to come in my career'.
Shakira’s spokespeople have always maintained that she fulfilled her tax duties, and that the star owed nothing given that she did not live in the country at the height of her fame. Her team dubbed the accusations ‘a total violation of her rights’, adding Shakira has ‘always co-operated and abided by the law, demonstrating impeccable conduct as an individual and taxpayer.’
Why Shakira won't go to prison for tax fraud
The main crux of the dispute is Shakira's residency status between 2012 and 2014. Prosecutors said that she was living in Spain but listed her official residence elsewhere to avoid tax.
Under Spanish law, people who spend more than six months in the country are considered residents and have to pay tax. In July, prosecutors issued a document which claimed she bought a house in Barcelona in 2012, which became a family home for her and her then-partner, Gerard Piqué.
Shakira's lawyers said that most of her income came from tours and she spent most of her time outside of Spain. In 2015, Shakira declares Spain to be her place of residence and she said she paid €17.2m in tax with no outstanding debts.