August 16, 23

NEWS / Spanish judge initiates tax residency fraud case against Shakira

A judge in Barcelona has initiated a second investigation into pop singer Shakira alleging tax fraud. Shakira is accused of 2 counts of tax fraud in 2018. This follows another case involving Shakira with allegations of tax evasion amounting to $16 million over in 2012, 2013, and 2014.

The singer has denied the charges and has reportedly paid millions of dollars to settle a portion of the tax debt. While her legal name is still awaiting formal notification of the new investigation, prosecutors have already been seeking up to 8 years in prison in the initial case.

According to Spanish tax authorities, Shakira spent over 200 days in the country in 2012, 2013, and 2014, making her a tax resident of Spain. This would mean that her entire worldwide income—not just that derived from Spain—along with certain assets, would be subject to tax.

According to the Spanish tax code, an individual becomes a tax resident if they spend more than 183 in the country during a calendar year. Many countries use the “183 day” rule, although this is not a hard and fast rule—in some countries, such as Switzerland—one can become a tax resident by only spending 90 days, while in others—such the United States—physical presence rules are quite complex, as they take into account the last 3 years, give different weight to the days an individual spends in the country in those 3 years, and have multiple exceptions.

Shakira, who is known for her 2001 hit “Whenever, Wherever,” and 2006 hit “Hips Don’t Lie,” is currently a resident of Miami, Florida. She denies any wrongdoing, claiming she relied on the advice of tax professionals and complied with the law. She is a currently a tax resident of the United States of America, which imposes a progressive income tax with brackets ranging between 10% and 37%, and the State of Florida, which does not impose any income tax.

A&M Logos International regularly handles tax residency cases for international tax matters. We can help you prove residency in the United States of America if necessary. The United States has one of the most complex tax systems, which can best be described as a multitude of co-existing systems, as federal income tax residency rules can differ considerably from tax residency rules in a given US state. US states such as California and New York, which have notoriously high income taxes, have recently become quite aggressive with enforcing their residency rules, and we may be able to help you file the necessary paperwork to prove that you are no longer a tax resident of such states. Moreover, some states, such as Michigan, Ohio, and Pennsylvania, allow local governments, such as cities and counties, as well as school and transit districts, to impose an income tax. It is crucial to know if your residency or employment makes you liable to file or pay taxes in a given jurisdiction. Call us today at (212) 233-7061 or e-mail us at info@apostille.us. You may also wish to check out our website.