Shakira To Pay $12 Million Fine, Accused Of Defrauding Spanish State

To end her trial for allegedly defrauding the Spanish Government of 14.5 million euros ($24 million AUD), Shakira has reached a deal with prosecutors to pay a fine of over 7.3 million euros ($12 million AUD).

She was set to embark on a lengthy trial after she was accused of not paying tax on income earned between 2012 and 2014.

Under the deal, she agreed to receive a three-year suspended sentence in exchange for the fine.

She has always denied the charges, and said she only moved to Spain full time in 2015.

In a statement released by the star, she said she had agreed to settle for sake of her sons, Milan and Sasha.

“I need 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, including my upcoming world tour and my new album."

“I admire tremendously those who have fought these injustices to the end, but for me, today, winning is getting my time back for my kids and my career.” 

The case centered on how much time she spent in Spain between 2012 and 2014.

Spanish authorities alleged she spent over half that period in Spain and therefore should have paid taxes in the country.

They say she moved to Spain after her relationship with Gerard Pique became public in 2011, however, she maintained official tax residency in the Bahamas until 2015.

Her lawyers argued that until 2014, she was leading a "nomadic life" and earned most money from international tours. They also said she moved to Barcelona permanently just before the birth of her second son.

Shakira’s lawyers argued that until 2014, she was leading a “nomadic life” and earned most of her money from international tours, and that she moved permanently to Barcelona just before the birth of her second son in January 2015.

Shakira announced her split from Gerard in June 2022, and moved to Miami in April with her sons.

Her trial was expected to run until December 14th, with the court scheduled to hear from almost 120 witnesses.

Spanish prosecutors interviewed her neighbours, tracked her images on social media, checked payments at hairdressers, and even the health clinic she attended during her pregnancy.

But this isn't the first time questions about her finances have been raised.

She was named in one of the largest leaks of financial documents in October 2021, known as the 'Pandora Papers.' These revealed the wealth and tax avoidance strategies of the global rich.

Spain has in recent years cracked down on celebrities, including Lionel Messi and Cristiano Ronaldo for not paying their full due in taxes.

Both players were found guilty of evasion and received prison sentences that were waived for first-time offenders.

Gerard Pique was also convicted of tax fraud in 2016, and was later ordered to pay 2.1 million euros.

Shakira has won three awards at the Latin Grammy Awards recently, for Song of the Year, and Best Pop Song, for her collab with Bizarrap on 'Bzrp Music Sessions, Vol. 53.'

The song swipes at Gerard, including references to being left with a "debt to the tax office."

It has been played almost 1.5 billion times on Spotify and YouTube.