In July, Shakira turned down a marriage proposal. She said in the interview with Elle that the standing trial is “a matter of principle.”
How does Spanish tax law work?
Spanish domestic tax law uses three criteria to consider if a person is a resident of Spanish territory: physical presence, centrality of economic interests and location of spouse and children female. In Shakira’s case, presence is key, said Adolfo Martín Jiménez, professor of tax law at the University of Cádiz and international tax specialist at Pérez-Llorca, a Madrid-based law firm. .
“Even if you are not present for many of those days, sporadic presence is considered to have them residing in another country, then there is an assumption that they are doing something strange,” said Jiménez. strange “.
Like in the United States, Spain applies a worldwide link to income. Mr. Jiménez said penalties like the one Spain’s tax authorities are pursuing – 23 million euros – are based on income.
How do these cases usually play out?
Shakira is not the first celebrity to come under the radar of the Spanish tax authorities.
Cristiano Ronaldo, Portuguese soccer star, paid $22 million in taxes and fines as part of a 2018 settlement for undeclared income from his advertising contracts. As part of the deal, Ronaldo, who played for Real Madrid for nine years, accepted a two-year prison sentence. But under Spanish law, first-time tax offenders convicted of financial crimes are exempt from prison if the sentence is two years or less.
Lionel Messi, the Argentinian soccer star who played for Barcelona, has also been found guilty in Spain of not disclosing some of his advertising deals.
But Shakira has paid off her taxes, as well as an additional 1.7 million euros in interest, by no means is she clear. Carlos Cruzado, a tax expert and president of Gestha, the tax agency’s technicians union, said prosecutors took this into account as a remedy when they asked for an eight-year prison sentence.
