On Monday, the first day of her tax fraud trial in Barcelona, music artist Shakira, who had been defending her innocence for over five years, made a last-minute agreement to save herself from facing jail time.
Shakira announced to José Manuel del Amo, the presiding judge, that she agreed with the settlement made with the prosecution. She responded “yes” to indicate that she was aware of six instances in which she neglected to pay 14.5 million euros (about $15.8 million) in taxes to the Spanish government between 2012 and 2014.
Shakira will get a fine of 7 million euros ($7.6 million) and a suspended sentence of three years under the terms of the agreement.
Instead, the trial was canceled after only eight minutes, sparing over 100 witnesses over the course of the next several weeks.
In July, prosecutors said that they planned to seek an eight years and two months jail term as well as a fine of 24 million euros ($26 million) for the singer. The singer is well-known across the globe for her successes in both Spanish and English across a variety of musical genres.
In a statement released by her PR company, Shakira said that while she had wanted to continue fighting, she had prioritized her family, profession, and mental health.
“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,” she said. “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.”
The whereabouts of Shakira, who is 46 today, at that time was crucial to the case.
The Colombian singer’s official residency was still in the Bahamas, but prosecutors in Barcelona claim that she spent more than half of that time in Spain and should have paid taxes on her international income there. The Bahamas has much lower tax rates than Spain.
Before going into the courtroom, the multiple Grammy and Latin Grammy winner gave a wave and a kiss to a small group of onlookers. She took a quick seat in front of the judges, with the defense and prosecution teams sitting on each side of her.
Reporters were informed by defense attorney Miriam Company that “this has been a difficult decision that took time to reach.” “Her legal team had prepared the trial and were convinced we could demonstrate her innocence, but the circumstances changed and (Shakira) opted to accept the deal.”
Prosecutors offered Shakira a settlement in July 2022, but she declined, stating via her Spanish PR company Llorente y Cuenca that she “believes in her innocence and chooses to leave the issue in the hands of the law.” The specifics of the possible transaction were kept under wraps.
Shakira was included in the “Paradise Papers” revelations, which exposed the offshore tax arrangements of a number of well-known people, including Madonna and Bono of U2.
Prior to this, Shakira’s PR company claimed that she had already paid off all of her debts, plus an extra 3 million euros, or around $3.2 million, in interest.
In November 2022, Shakira’s defense team, Molins Defensa Penal of Barcelona, said that she had not spent more than 60 days in the nation during the relevant time and that, in order to be deemed a fiscal resident, she would have required to have spent half of the year in Spain. In 2011, she went on a global tour that took her far from Barcelona, according to her defense, and after that, she spent a lot of time in the US serving on the jury for the NBC television music competition The Voice.
The examining judge, Marco Juberías, concluded a three-year investigation into the accusations in 2021, finding “sufficient evidence of criminality” to support a trial despite the disagreement of Spanish prosecutors. In 2019, Shakira asserted her innocence at Juberías’ interrogation.
Last year, her plea to have the case dismissed was denied.
According to her defense team, Shakira registered her fiscal residence in Spain in 2014, coinciding with her eldest child’s enrollment in a Barcelona school, since she intended to spend more time there with her family.
After conducting an initial investigation, an investigative judge in Spain determines whether to proceed with a trial or to dismiss the case. If a first-time offender receives a sentence of less than two years in jail, the court may decide to waive their prison term.
Spanish state prosecutors accused Shakira in September of allegedly evading paying 6.7 million euros in taxes on her income from 2018 in a separate probe.
They said she avoided paying the tax by utilizing an offshore corporation with its headquarters in a tax haven.
Over the last ten years, Spain has taken harsh measures against soccer players who haven’t paid their fair share of taxes, including Lionel Messi and Cristiano Ronaldo. Despite being found guilty of evasion, the former players for Real Madrid and Barcelona both avoided going to jail since their sentences were postponed.
Shakira, whose full name is Shakira Isabel Mebarak Ripoll, has two children, Milan and Sasha, with Barcelona soccer player Gerard Piqué. Before calling it quits on their 11-year romance last year, the pair resided together in Barcelona. She has lived in Miami ever since.
Shakira expressed her gratitude to her Spanish followers for “being with me in the good times and the bad” after winning the Latin Grammy Awards gala in Seville on Thursday.
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