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Explained: The tax evasion case against pop superstar Shakira and if she will actually go to jail

Prosecutors have accused Shakira of defrauding the Spanish tax office out of 14.5 million euros on income earned between 2012 and 2014. However, the superstar has stated that she is ‘absolutely certain of her innocence’ and rejected a plea deal

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FP Explainers|Jul 29, 2022, 22:03:13 IST

Spanish prosecutors said Friday they would seek a prison sentence of more than eight years against global music superstar Shakira, after she rejected a plea deal on accusations of tax evasion.

What do prosecutors say?

Prosecutors in Barcelona will also demand a fine of nearly 24 million euros ($24.5 million) from the 45-year-old "Hips don't Lie" songstress, whom they accuse of defrauding the Spanish tax office out of 14.5 million euros on income earned between 2012 and 2014.

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Prosecutors say Shakira moved to Spain in 2011 when her relationship with FC Barcelona defender Gerard Pique became public but maintained official tax residency in the Bahamas until 2015. The couple, who share two children, announced their separation in June.

They say that until 2014 she earned most of her money from international tours, did not live more than six months a year in Spain and was therefore not resident under tax law.

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People who spend more than six months a year in Spain are considered residents for tax purposes.

Shakira rejects plea deal

Shakira, who has sold over 60 million albums, rejected a plea deal on Wednesday, saying in a statement through her lawyers that she was "absolutely certain of her innocence" and had decided to let the case go to court, "confident" that her innocence would be proven.

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Lawyers for Shakira, one of the biggest names in the global music industry, say an agreement remains possible until the start of any trial.

A formal referral to court has not yet been announced, neither has a trial date been set.

On Wednesday, the star slammed the "complete violation of her rights" and "abusive methods" carried out by the prosecutor's office.

She claimed prosecutors were "insisting on claiming money earned during my international tours and the show 'The Voice'" on which she was a judge in the United States, when she was "not yet resident in Spain".

Shakira was on the singing competition show between 2013 and 2014.

Her lawyers say that until 2014 she earned most of her money from international tours, moved to Spain full time only in 2015 and has met all tax obligations.

She says she has paid 17.2 million euros to Spanish tax authorities and that she has "no debt to the Treasury for many years".

A Barcelona court in May dismissed an appeal from the singer to drop the charges.

Judge Marco Jesus Juberias in a pre-trial investigation -- a preliminary step before a trial is set -- said he saw "sufficient evidence" for Colombian singer Shakira to face trial for tax fraud, as per a court document.

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"The documents (...) annexed to the lawsuit are sufficient evidence of wrongdoing to continue with the proceedings," the judge said in the court document.

Will Shakira actually go to prison?

No one can say for sure.

But Spain has seen several high-profile court cases involving football such as Lionel Messi, Neymar and Cristiano Ronaldo accused of tax-dodging.

An emotional Lionel Messi addresses reporters in a press conference in Barcelona while announcing his decision to leave FC Barcelona after 21 years at the club. AP

Messi had been sentenced to 21 months in jail for committing tax fraud in Spain amounting to 4.1 million euros, but the Argentine footballer only ended up having to pay a fine.

Real Madrid defender Marcelo Vieira in September 2018 admitted to tax fraud in and accepted a four-month suspended jail sentence.

Under Spanish law, a two-year sentence for a first offence can be served on probation. But Shakira is facing a far longer term in prison if convicted.

Past controversies

Shakira was named in one of the largest ever leaks of financial documents in October 2021, known as the "Pandora Papers", among public figures linked to offshore assets.

She was also named in the 2017 Paradise papers.

With her mix of Latin and Arabic rhythms and rock influence, three-time Grammy winner Shakira scored major global hits with songs such as "Hips don't Lie", "Whenever, Wherever" and "Waka", the official song of the 2010 World Cup.

Shakira, who has sold over 60 million albums, separated from Pique in June. The couple have two children.

With inputs from agencies

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First Published:Jul 29, 2022, 22:01:14 IST
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