Shakira has reportedly paid a major bill for back taxes owed to the Spanish government.

According to numerous reports, this international superstar has paid more than 20 million Euros – or $25 million – to the Spanish authorities to settle part of a tax fraud debt pending ongoing investigation.

The investigation seeks to establish whether Shakira legally resided in Spain with her longtime boyfriend, Barcelona Futbol Club soccer player Gerard Piqué, between the years 2011 and 2014.

Spanish law states that if an individual spends more than 183 days in the country, they are considered a legal resident and liable for paying taxes on income acquired internationally. However, those spending fewer than 183 days in Spain would only be accountable for income earned within the country.

The Defense Has Spoken

Shakira, 41, reportedly claimed that she had spent the majority of those years as a resident of the Bahamas. She claims to have filed her taxes accordingly. In documents obtained by both El Periodico and El Pais, the singer’s defense claimed that she had indeed spent most of her time abroad, and made no effort to intentionally hide her income, citing any misunderstandings as “a difference in criteria.”

It was confirmed that in 2009, Shakira relocated her intellectual property rights and brands to a company based in Malta. Malta is known for and has faced allegations of being a tax heaven.

Spanish press reports have detailed extensive efforts of local tax authorities to establish Shakira’s place of residence during the years in question. They’ve begun studying photos of the star out and about in Spain to piece together her story. They even interviewed her hairstylist.

Shakira’s reported payment covers the amount owed for 2011, while the investigation into taxes owed for 2012-2014 remains ongoing, El Periodico claims. Once completed, the district attorney and the Agencia Estatal de Administración Tributaria (Spanish Tax Agency; their equivalence of our Internal Revenue Service) are expected to decide if tax fraud charges will be brought. Then, the case will proceed to court.

Bottom Line

If she did commit tax fraud, Shakira would join a list of celebrities who have been in trouble with tax authorities.

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Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax Problem Solutions as well as an Enrolled Agent and a Certified Tax Resolution Specialist.
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Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.

The book is available in paperback and ebook on https://Amazon.com
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