Shakira is not the first celebrity to be accused of tax evasion many famous singers, actors and TV stars have been wrapped up in issues about their tax payments. Public figures such as Abby Lee Miller and Martha Stewart have faced a couple of months in prison because they pleaded guilty to tax fraud. Celebrities make a great amount of money so the way their taxes are done is very different as they do not receive a steady wage like most working-class people.
What is Tax Evasion?
Tax evasion is a form of tax fraud, the difference is tax evasion is more severe which can lead to a greater punishment. Tax evasion usually occurs if someone misinterprets their income to the government or creates a plan and a lie in order to not pay taxes on a certain amount of income they made that year. In many cases, it could either be a miscalculation, a misunderstanding or a purposeful scheme which is what the Spanish government is trying to decipher. The usual penalty for tax evasion in Spain is multiple years in prison depending on the gravity of the case and a fine that is almost six times the amount of money owed.
The Accusations
In December 2018 Shakira was charged with tax evasion by the Spanish court. They accused her of not paying 14.5 million euros in taxes, about 13.9 million US dollars, from the years 2012-2014. The argument lies within the fact that the Spanish court believes during that period of time Shakira was a resident of Spain and was living with ex-partner Pique in Barcelona. The court claims she was in Spain for more than 183 days which legally would cause her to pay taxes in Spain as she would be considered a resident after that certain amount of time. Shakira and her defense team rebutted that claim by stating she was a resident of the Bahamas during that time and moved to Barcelona in 2015.
This has been an ongoing case; in July 2021 they had concluded the case, but her defense team tried to appeal to stop the trial which they ended up losing. If at that moment she would’ve pleaded guilty and paid back what she owed she would’ve been sentenced to a shorter amount of time. The Spanish court continues to challenge Shakira as they believe her claim about not residing in Spain was done in order to hide part of her income. Shakira is at risk of being sentenced to eight years in prison if she pleads guilty during this trial.
Shakira’s Clapback
Most recently she has denied a settlement deal from the prosecutors as she wants to prove that she is not guilty. Her PR team has put out a statement claiming she is reassured in her innocence and will not settle for a settlement. There has never been a slip-up on Shakira’s part as she continues to deny the claims about her residency in Spain during 2012-2014. As well as claiming that she paid her part in taxes and any interest she may have owed to Spain.
She believes the prosecutors are just trying to tarnish her public image and ruin her reputation as she is not the first public figure to have tax issues with the Spanish government.
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