Colombian pop star Shakira has settled with Spanish prosecutors to avoid a trial over alleged tax fraud. The agreement, which was announced on Monday, will see the singer pay 14.5 million euros ($15.7 million) in fines and back taxes.
Shakira was accused of failing to pay her fair share of taxes between 2012 and 2014. Prosecutors alleged that she had used a shell company in the Bahamas to hide her income from the Spanish authorities.
The singer’s lawyers had argued that she had never lived in Spain during that period and was, therefore, not liable to pay taxes there. However, the judge in the case ruled that Shakira had been a tax resident of Spain for several years and was, therefore, obliged to pay taxes on her worldwide income.
“We are pleased to have reached an agreement with the Spanish prosecutor’s office that allows Shakira to move on with her life,” said Shakira’s attorney, Javier Maza, according to The Telegraph.
“We are convinced that the arguments we presented would have been successful in court, but we are also aware that a trial would have been long and complex,” Maza added.
Under the settlement terms, Shakira will pay a fine of 2.5 million euros and will also have to pay back the 12 million euros in taxes that she is alleged to have evaded.
“This agreement is a fair and equitable solution to this dispute,” said a Spanish prosecutor’s office spokesperson.
The case has been a major embarrassment for Shakira, one of the world’s most successful pop stars. However, the settlement means she can now put the matter behind her and focus on her music career.