![]() You must be present for 31 days during the current year, plus 183 days during the three-year period that includes the current year and the two years immediately before that, counting all the days you were present in the current year, and 1/3 of the days you were present in the first year before the current year, and 1/6 of the days you were present in the second year before the current year. The substantial presence test is based on a formula-brace yourself, there’s math. The green card test is precisely what it sounds like: You generally have this status if the US Citizenship and Immigration Services issued you a Permanent Resident Card, Form I-551, or green card. If you are not a US citizen, you can still be a US resident for tax purposes if you meet either the green card test or the substantial presence test for the calendar year. Most countries-the US included-have specific rules for determining residency. When it comes to tax, residency is important no matter who you are. So what does this mean for those of us who aren’t Grammy-winning superstars? Plenty. Messi was subsequently found guilty of criminal tax fraud in Spain and sentenced to under two years in prison-though he served no actual jail time. Footballer-and former FC Barcelona right-winger-Lionel Messi made what he called a “corrective payment” to Spanish authorities after being charged with tax crimes. Paying up doesn’t automatically clear the slate. The authorities have acknowledged there is a mitigating factor in the case: Shakira previously paid millions to settle part of the alleged tax debt, although she did not admit she owed the tax. You can read my take on the Pandora Papers here. But failing to report that income is a crime. Of course, simply having an offshore account isn’t a crime in most countries, such as the US and Spain-it’s not evidence of wrongdoing. The authorities suggested they are pursuing such a harsh punishment because of the relatively large amount of money involved and Shakira’s alleged use of tax havens-her name appeared in both the Paradise Papers and the Pandora Papers. ![]() In addition to significant prison time, authorities are seeking 23.7 million euros (approximately $24 million) in fines. Now, prosecutors are moving ahead with criminal charges after Shakira reportedly rejected a settlement deal, though no trial date has been set. Photographer: Maddie Meyer via Getty Images According to investigators, Shakira did not visit her home in the Bahamas for a single day during that time. ![]() That schedule supported the idea the entertainer spent more than 200 days in Spain in each of 2012, 2013, and 2014. ![]() In 2020, a Spanish newspaper, El País, published a reconstruction of her schedule based on the investigation. Investigators also checked credit card receipts and tracked Shakira’s activity on social networks such as Instagram, where she has more than 76 million followers. She even, they noted, purchased a home in Barcelona in 2012, where she lived with Piqué and, eventually, her two children.īy law, individuals are considered Spanish residents for tax purposes if they spend more than 183 days in Spain during a calendar year or if Spain is their focus or center of economic interests.Īs part of their efforts to prove Shakira was a resident of Spain, tax investigators followed the entertainer to places she frequented, such as her hairdresser, her personal trainer, and a local school where she was regularly observed dropping off her children. However, Spanish tax authorities claim she actually was a resident of Spain much earlier-from 2011 through 2014. Photographer: David Ramos via Getty Images According to Spanish tax authorities, she continued to claim that she lived in the Bahamas for tax purposes until 2015, when she officially switched her residency to Spain. The Allegationsīefore she met Piqué, Shakira resided in the tax-favored Bahamas. The video also had personal significance for Shakira: She met FC Barcelona footballer Gerard Piqué while filming. The video for the song has been viewed more than 3 billion times on her YouTube channel. Two years later, Shakira was the most-searched-for female entertainer on Google-the same year she recorded “Waka Waka (This Time for Africa),” the official song of the 2010 FIFA World Cup. In 2008, Forbes named Shakira the fourth-most-earning female artist in the music industry, landing a spot between Céline Dion and Beyoncé. As she got older, she churned out hits such as “Hips Don’t Lie” and “Whenever, Wherever,” making her a global celebrity-and a rich one. She recorded her debut album, “Magia,” at age 13. Shakira, whose full name is Shakira Isabel Mebarak Ripoll, was born in Colombia in 1977. The entertainer, now a household name, has denied the charges. Prosecutors in Spain are calling for more than eight years in prison if they succeed in their tax fraud case against pop star Shakira.
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