Shakira reaches a deal with Spanish prosecutors on the first day of tax fraud trial.

Shakira has entered into a settlement agreement with Spanish authorities to resolve a tax fraud dispute. The dispute, which could have resulted in a potential eight-year prison sentence and a 24 million euro fine for the performer, was addressed on the first day of the trial in Barcelona. During the proceedings, Shakira informed the judge of her decision to accept the settlement.

Spanish government prosecutors have accused Shakira of committing tax fraud amounting to 14.5 million euros on her income from 2012 to 2014. Despite relocating to Spain in 2011, Shakira reportedly retained tax residency in the Bahamas until 2015. These allegations were initially brought forward in 2018, and legal proceedings have been ongoing since that time.

In a statement provided to Vanity Fair, Shakira affirmed her innocence but expressed that she had opted for a settlement for the well-being of her children.

“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.She also mentioned “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.”

Here is her Twitter page

Barcelona prosecutors claim that during more than half of the specified period, the Colombian singer was present in Spain and, as a result, should have been liable for taxes on her global income in the country, despite her official residence remaining in the Bahamas. This is noteworthy because tax rates in the Bahamas are significantly lower than those in Spain.

The recipient of multiple Grammy and Latin Grammy awards greeted a small gathering of onlookers with a wave and a blown kiss before making her way into the courthouse. Taking her place in front of the panel of judges, she sat briefly, surrounded by prosecuting teams on one side and the defense on the other.

Defense lawyer Miriam Company told reporters. "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."

In July 2022, Shakira declined a settlement offer from prosecutors, as communicated through her Spanish public relations firm Llorente y Cuenca. She stated her confidence in her innocence and opted to entrust the matter to the legal process. The specifics of the proposed deal were not disclosed publicly.

Shakira was implicated in the "Paradise Papers" revelations, which exposed the offshore tax arrangements of various prominent figures, including music icons like Madonna and U2's Bono.

Her public relations firm had previously asserted that she had settled all outstanding amounts owed, along with an additional 3 million euros (approximately $3.2 million) in interest.Shakira was implicated in the "Paradise Papers" revelations, which exposed the offshore tax arrangements of various prominent figures, including music icons like Madonna and U2's Bono. In November 2022, Shakira's defense, represented by the Barcelona firm Molins Defensa Penal, contended that she had not exceeded 60 days per year within Spain during the relevant period. They emphasized that, to be deemed a fiscal resident, she would have had to spend at least half the year in the country. The defense further argued that she was absent from Barcelona for extended periods during a global tour in 2011 and spent substantial time in the United States as a member of the jury for the NBC television music talent show, The Voice.

Spanish prosecutors held a contrary view, and in 2021, the investigating judge, Marco Juberías, concluded a three-year inquiry into the charges, stating that there was "sufficient evidence of criminality" warranting the case to proceed to trial. Shakira maintained her innocence during questioning by Juberías in 2019.

Last year, her attempt to have the case dismissed through an appeal was unsuccessful.

Shakira's defense team asserted that in 2014, she established her fiscal residency in Spain concurrently with enrolling her oldest child in school in Barcelona. This decision aligned with her intention to spend more time in the country with her family.

In the Spanish legal process, an investigative judge conducts an initial inquiry and determines whether to dismiss the case or proceed to trial. For first-time offenders sentenced to less than two years of imprisonment, a court has the discretion to waive prison time.

Shakira, whose complete name is Shakira Isabel Mebarak Ripoll, shares two children, Milan and Sasha, with Gerard Piqué, the Barcelona soccer star. The couple lived together in Barcelona for 11 years before concluding their relationship last year. Following their separation, Shakira has been residing in Miami.

In June 2022, the couple ended their decade-long relationship, and the aftermath has been characterized by diss tracks and highly targeted posts on Instagram.

During the entire tax case proceedings, Shakira consistently asserted her innocence in the matter.

Here is her full statement :

Image source Vanity Fair