In its new complaint, the Barcelona Prosecutor’s Office accuses singer Shakira of defrauding the Tax Office of 6.1 million euros in the 2018 financial year and therefore attributes it to her. Two crimes against the treasury. With late payment interest, the debt reaches 6.6 million euros. This new complaint is being processed in a court in Esplugues de Llobregat and is also included in the judicial process for alleged tax evasion in previous years, for which he faces eight years in prison. The public accusation is that the Colombian artist benefited from a “corporate network”. With a company based in Luxembourg To avoid paying taxes in Spain. Companies in Spain, the Netherlands, the British Virgin Islands, Malta, Panama and Liechtenstein also participated in these operations.
The complaint states that Shakira Isabel Mebarak Ripoll) In 2018, she resided at Esplugues de Llobregat with her then-partner, former football player Gerard Piqué, and their two children. The complaint states that as a resident of Spain, he is “obliged” to file Personal Income Tax (IRPF) and Wealth Tax returns for the total of his worldwide income, regardless of his place of residence. work or residence took place.
The prosecution alleges that the singer, “acted by the desire not to pay taxes on all his income and to stop consciously and voluntarily entering the coffers of the corresponding State”, made “untrue” statements to Hadienda, omitting data about your income and “Deducting improper expenses.” In this way, in his opinion, he managed to reduce the amount payable to the State Tax Office and Catalonia.
In particular, the defendant did not report the income of $12.5 million, which he received as an advance in 2011 and accrued in 2018, in his tax returns. From the musical tour “El Dorado” nor another 2.5 million euros held by two brokerage companies. Likewise, according to the prosecution report, the singer from Barranquilla made repeated wage deductions of three million euros for “unfair” personal expenses of 500,000 euros, as well as for the depreciation of his own music rights.
Countries with low taxation
According to the prosecutor’s office, Shakira “used a corporate network” to avoid paying personal income tax for the 2018 fiscal year and obtained her income from companies located in countries with low taxation and “high transparency”, such as Luxembourg. The accusation details how AC, which is owned by another Malta-based company, generated revenue from the transfer of the singer’s music rights. “satisfied and affordable“Part of the expenses of professional activity, such as a tour of the United States.
For this purpose, the artist, “acting with the desire to pay as little tax as possible”, signed different agreements. (Tax Decision) We ensured that less tax was paid by negotiating with the Luxembourg tax authorities, where certain tax conditions were determined. The tax rate on the company’s reported ordinary income was only 1.39%. This company for the prosecution “interleaved” and “instrumental” Since they did not carry out any activities, they “limited themselves only to official and administrative intervention” for purely financial purposes.
GGT, another Spanish company founded by the artist, will also participate in this framework, which was created for the purpose of accounting for income and expenses corresponding to the concerts held during the “El Dorado” tour outside the United States. This company has “officially” signed a contract with the Luxembourg company AC to provide the services obtained from this tour. The prosecution includes other companies in the operation Netherlands, British Virgin Islands, Malta, Panama and Liechtenstein. According to him, all of them “lacked the material and personal means necessary to carry out any activity, and the expenses generated by them were purely administrative expenses.” “The defendant’s only relationship with the lawyer is British Virgin Islands, Malta, Panama, Netherlands, Luxembourg and Liechtenstein“It was the residence of the companies and organizations through which it channeled the capital movements produced by its professional activities and maintained its existence,” the accusation emphasizes, adding that these are therefore “instrumental” companies.