EDUCATING SHAKIRA (REVISITED)

In November 2023, I wrote a piece called “Educating Shakira” about the Colombian singer’s long-running battle with Spain’s tax authority (AEAT).

At the time, she’d just settled with prosecutors, accepting six charges of tax fraud, a €7.3 million fine, and a suspended three-year prison sentence.

She said settling was about protecting her children and her career, even though any victory would be “hollow if it came at the cost of years of her life.”

I described it as “a pyrrhic victory… without the victory.”

Today, there is a real victory.

Spain’s National Court has acquitted Shakira for the 2011 tax year, and ordered the Spanish Treasury to reimburse her more than €55 million in wrongly imposed fines plus interest.

The court’s reasoning? They couldn’t prove she was resident.

Why this matters beyond celebrity gossip?

Shakira’s statement after the ruling is worth reading in full:

“There was never any fraud, and the Administration itself was never able to prove otherwise, simply because it wasn’t true.

Even so, for almost a decade, I have been treated as guilty, every step of the process has been leaked, distorted, and amplified, and my name and public image have been used to send a threatening message to other taxpayers.”

“After more than eight years of enduring brutal public shaming, orchestrated campaigns to destroy my reputation, and countless sleepless nights that ultimately affected my health and the well-being of my family, the National Court has finally set things right.”

She went further:

“My greatest wish is that this ruling sets a precedent for the Tax Agency and serves the thousands of ordinary citizens who are abused and crushed every day by a system that presumes their guilt.”

Strong words. But not unfounded.

The pattern is familiar as Spain’s AEAT has aggressively pursued high-profile targets over the past decade, including Lionel Messi, Cristiano Ronaldo and José Mourinho.

The strategy appears to be target celebrities, generate headlines, send a message to everyone else.

Shakira spent eight years under investigation. She paid millions upfront just to have the standing to appeal. Her name was dragged through courts and tabloids… And for 2011 at least, she was right all along.

Today’s ruling doesn’t appear to change the 2012-2014 settlement. But it does vindicate her for 2011 and represents a significant victory against a tax authority that, in her words, tried to “publicly burn her at the stake.”

🔗 My original 2023 analysis: https://lnkd.in/ehenNz6K