Shakira says she settled Spanish tax case to protect her children and not 'out of cowardice'

LOS ANGELES, CALIFORNIA: Shakira is addressing her contentious legal battle more than a year after settling with Spanish authorities over tax fraud allegations. The Colombian pop star agreed to a $7.5 million fine last year, avoiding a potential prison sentence.

Shakira, however, has denied any wrongdoing. In a recent letter published in the Spanish newspaper El Mundo, she stated that she agreed to the settlement solely for the sake of her two young sons, Milan, 11, and Sasha, 9. She also criticized the Spanish government, alleging that they were "burning [her] at the stake" to enhance their agency's reputation.

Shakira explains reason for settling tax case

“I want to leave my children the legacy of a woman who explained her reasons calmly and in her own time, when she considered it necessary, not when she was forced to,” Shakira said, according to People Magazine.

“I need them to know that I made the decisions I made to protect them, to be by their side and to get on with my life. Not out of cowardice or guilt.”

The 'Hips Don’t Lie' singer, 47, was charged with tax fraud in 2018 after it was revealed by the authorities that she had stayed in Spain from 2012 to 2014 and therefore owed around $16 million in overdue income taxes.

Shakira accuses Spanish government of publicly burning her reputation

In her letter, Shakira stated that 2023 was a tough year for her, as she felt people were closely watching her every move, hoping to see her "breaking down" amid her legal battle and her highly publicized breakup with longtime partner Gerard Pique.

“But the most frustrating thing was that a state institution seemed more interested in publicly burning me at the stake than in listening to my reasons. Well, I think the time has come to hit back,” she wrote, before accusing tax authorities of making up a “contrived story” over her taxes to “create obligations that did not exist.”

Shakira details why she was staying in Spain at the time 

The performer claimed that when she first started seeing Pique in 2011, she wanted their relationship to "prosper," so she tried to travel to Spain to spend time with him because of his job obligations. However, she claimed that doing so "created many complications" because it kept her away from her work. 

She said that the tax agency "immediately tried to charge" her for the previous ten years after she made the decision to become an expat in 2015 and live in Spain.

“What seemed like a polite way of formalizing my situation turned out to be a trap,” she said, noting she only spent 73 days in Spain in 2011, and the minimum established by law to be a tax resident is 183 days.

“A person who spends their time touring the world cannot have the intention of being a tax resident in a place just because the person they are in a relationship with at the time lives there.”

Shakira claims she consistently paid her taxes on time

Shakira said she "always fulfilled" her tax duties and that there were no problems discovered after additional IRS and agency examinations.

She accused Spanish tax authorities of wanting “hunting trophies” to help rebuild their credibility, and said they’ve done so by “intimidating people, threatening them with jail, putting our children’s peace of mind at risk and putting us under pressure to break us.”

“They wanted to make the public believe that I did not pay my taxes, when the truth is that I paid much more than I should have,” she said, making reference to the voluntary fines she paid, calling them “unjustified.”

The Grammy-winning singer stated that she felt compelled to write her own story and that this was the appropriate moment to speak up.

“There may be those who wonder why I am bothering to make these statements now. The first reason is my children. We have lived in an era marked by a tone of arrogance from the State, but bullying is not the same as giving reasons,” she said.

“Things are not solved by burning one public figure at the stake every year as if it were an Inquisition trial in order to recover lost prestige.”

She added, “No one can write my story for me. Just like with my songs, I sing to live peacefully again, to turn the page.”

Shakira could have faced nearly a decade in prison

Shakira could have faced up to eight years in prison and a fine exceeding twenty-six million dollars if found guilty. In November last year, she reached a settlement in court that provided a three-year suspended sentence along with a sizable fine.

At the time, Shakira told People in a statement that she was innocent and that the issue had been resolved for her sons, who she shares with her ex-partner Pique.

“While I was determined to defend my innocence in a trial that my lawyers were confident would have ruled in my favor, 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.

“Throughout my career, I have always strived to do what’s right and set a positive example for others.”

Prosecutors in Spain dropped further tax fraud allegations against the celebrity in May, citing insufficient evidence of the crime. The accusations were related to taxes she filed on her income from 2018, and it was stated that she had been charged with using an offshore business based in a tax haven to avoid paying almost $7.2 million in taxes that year.