Introduction
It has to be said that my ode to “Educating Rita” fused with Shakira’s tax travails ended up somewhere in the ‘reject’ pile – alongside my failed attempts to turn Jay-Z’s “99 Problems” into Jerem-E’s “110 Growth Measures.”
However, I liked the title and I couldn’t possibly not write about Shakira bearing in mind the most recent headlines about her tax affairs.
So, here we are.
Celebrity skin…in the game
As anyone who reads my guff will know, in 2019, the Colombian singer was hit with charges in respect of allegations she had failed to pay £12.3 million in taxes between 2012 and 2014. This was a period she had spent building a home in Barcelona with footballer Gerard Pique and welcoming their first child.
It turns out that the Agencia Estatal de Administracion Tributaria (AEAT), Spain’s equivalent of the HMRC, had cast its investigative eye over Shakira following her appearance in the ‘Paradise Papers’ leak of 2017.
Coming out swinging, in an Elle interview, Shakira attributed her tax travails to her celebrity status, a sentiment probably echoed by other high-profile AEAT targets like Jose Mourinho, Cristiano Ronaldo, and Lionel Messi.
It’s not about the money
August 2022 marked a harsh turn in Shakira’s legal tussle as Spanish prosecutors sought an eight-year prison term and a staggering £22 million fine.
Yet Shakira stood firm, refusing an initial settlement offer, declaring, “it’s a matter of principle.”
A pyrrhic victory… without the victory
Facing daunting legal prospects, Shakira opted to settle with prosecutors, accepting charges and a hefty €7.3 million fine, half the owed amount.
Additionally, she agreed to pay €438,000 to avoid a potential three-year prison stint, a choice rooted in personal reasons she articulated via her Spanish communication agency.
Stating that she prioritised her career and children, she voiced that any victory would be hollow if it came at the cost of years of her life.
Love advice from Counsel
Shakira’s lawyer, Pau Molins, ruffled feathers by suggesting that her choice of partner, Gerard Pique, inadvertently led to her facing six tax fraud charges instead of three.
Highlighting disparities between tax laws in Catalonia and Madrid, Molins contended that Shakira’s residence in Catalonia during her relationship with Pique fuelled her legal woes. He made the somewhat provocative assertion that had Shakira chosen former Real Madrid star Sergio Ramos, residing in Madrid, her tax liabilities might have been significantly lower!
In a bid to ‘educate Shakira,’ Molins’ unconventional advice might not sit well with the self-proclaimed She-Wolf herself!
Conclusion
One of the themes of Educating Rita is that Frank, Rita’s tutor, also learns greatly from his pupil.
Perhaps we can all learn from Shakira’s journey. That internationally mobile, wealthy individuals will continue to prick the interest of tax authorities in these straitened times.
What would we do without her?
If you have any queries about this article, or tax matters in general, then please get in touch.