Shakira Tax Haven Strategy Explained (she only paid 2% tax)

Shakira has been in the spotlight recently for tax evasion charges. In this video, I will go through how Shakira lowered her effective tax rate through the use of tax havens as well as how the Spanish tax authorities are basing their assessments on.

[@SeanOHanlon]

The moral of the story is: Never stay in the same country for more than 180 days.

[@2011blueman]

Moral of the story, just pay your taxes. She would have paid lawyers a fortune to create that bogus tax shelter scheme and then she ended up paying different lawyers to keep her out of jail.

[@user-bk4us9vv8t]

@@2011blueman People who work for their money should be allowed to keep it. Taxation is theft and a form of surveillance. All the time, politicians do unlawful things with the taxes they collect.

[@jensg.7553]

It's not that simple. Very few developed countries determine your centre of residence solely based on the number of days you are present. The 180 days is merely a test that indicates that you are resident there for tax purposes after 180 days. However, you can become a resident much earlier by fulfilling other criteria. In Germany and, as far as I know, also in Austria, it is sufficient, for example, that you have a home that is available to you at all times and if you have, the number of days you're actually in the country do not matter. Boris Becker had a similar problem. If I remember correctly, a British man in Seychelles was found guilty of tax evasion because his wife and children were still living in the UK and the children also went to school there.

[@SeanOHanlon]

@@jensg.7553 With the exception of the United States, that's EXACTLY how residency for taxation is determined.

[@iamonline3221]

@@2011blueman haha , that's so true, the crazy amount she paid lawyers is probably mind boggling

[@limaradam4728]

You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life

[@toni_leyn]

Thanks for continuing updates I'd rather trade the stock market as it's more profitable. I make an average of $42,500 per week even though I barely trade myself.

[@francisonyige9618]

I'm favoured financially, Thank you Jesus $36,000 weekly profit regardless of how bad it gets on the economy.

[@keithcarvey48]

How ..? Am a newbie in crypto investment, please can you guide me through on how you made profit?

[@sara_top80]

Thanks to Mrs Maria Davis.

[@sara_top80]

She's a licensed broker here in the states

[@anonymous6594]

The tax strategy was genius. If her primary domicle was actually what she said it was, it would have really been genius. LOL

[@seansezz]

So it wasn't genius

[@anonymous6594]

@@seansezz it was genius setup but she spent too much time in Spain. She couldn’t spend more than 183 days a year and she overdid each year by 30 days. If you spend more than 183 days, taxes kick in as a resident.

[@seansezz]

@@anonymous6594 I see

[@johnyossarian9059]

Establishing an offshore company and a tax residency in two separate tax heavens can probably be categorized as genius, but it is not uncommon. This strategy has been around for a long time.

[@castlerock58]

It probably was. Until she had her first baby in Spain she probably did not live 183 days in any country. Her home country is Colombia, she does most of her recording and worked on the Voice in the US. Probably does live part time in the Bahamas. She also does world tours. If you don't live 183 in any country, you can decide which one is your primary residence for tax purposes and comply with the tax laws of that country. Spain may well be pulling a fast one. They have a reputation for that. They seem to be counting all time in the EU as time in Spain. She must have exact records of where she was.

[@strahinjavelickovic2194]

She already paid all her taxes she owned in Spain (20M) in 2018. They are taking her to court because they wanna fine her for late payment, and are asking for 23M + 8years in prison which is absurd that the fine is bigger than the actual debt. But thats Spain for yall

[@therealcpa_ey]

They may try to fine her with gross negligence 😞

[@anonymous6594]

So I guess she did avoid taxes for those years (2011-14) if she paid them?

[@strahinjavelickovic2194]

@@anonymous6594 lmfao you really think she is paying her own taxes? People working for her screwed up, and she paid the moment she found out about it. She was paying taxes just not in Spain during 2011-2014

[@kaozzzzzzzzz1]

if this was Trump, you'd tell them to lock him up. So she needs to be locked up as well.

[@angelicamaria9148]

@@therealcpa_ey It is a penalty for committing a crime. She new what she was doing.

[@PremSteve-yg4de]

These frequent tax code changes are disrupting my long-term investment strategies. Are there ways to structure my investments to be more resilient to potential tax code modifications?

[@valeriepierre9778]

Things are strange right now. The US dollar is becoming less valuable because of inflation, but it's getting stronger compared to other currencies and things like gold and property. People are turning to the dollar because they think it's safer. I'm worried about my retirement savings of about $420,000 losing value because of high inflation. Where else can we keep our money?

[@edelineguillet2121]

I agree. Based on personal experience working with a financial manager, I currently have ($2million) in a well-diversified portfolio that has experienced exponential growth from when i started. It's not only about having money to invest in stocks, but you also need to be knowledgeable, persistent, and have strong hands to back it up.

[@yolanderiche7476]

Recently, I have been exploring the possibility of consulting with advisors. As a mature individual, I am in need of guidance, but I am curious to know how truly impactful their services can be?

[@edelineguillet2121]

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Sharon Marissa Wolfe for the last five years or so, and her returns have been pretty much amazing.

[@valeriepierre9778]

Thanks for the advice. The search for your coach was simple. I investigated her well before using her services. Considering her résumé, she appears competent.

[@justinthomas2880]

Man, if she had just gone across the border a hand full of times and got her passport stamped, she could have battled that, no? If you want to win, you got to play the game.

[@geralddial3154]

true

[@AsifSaifuddinAuvipy]

True

[@MuzzaHukka]

Every Spanish citizen has a DNI number, it's like a social security number - it's unique and stays with the person for their life. For foreigners, there's something else which works the same way but it's called an NIE. When you buy a car or a house, your DNI/NIE is on the deed. Open a bank account? Pay utility bills (or refuse to)? It's all tied to your identity. If you are a tax resident in Spain and you decide to "just go across the border", the Spanish government has routinely used cell phone triangulation, credit card bills, utility usage spikes/sudden declines - all automatically obtained, put together into one "space" and then computed by the tax office computer WITHIN SECONDS. This is for mere mortal people. Spain specifically, can verify if you were in fact inside of the country or out quicker than you can pronounce a sentence claiming that you were away 😂

[@user-qy2wf2lt6v]

​@@MuzzaHukka Here is the thing - They can, but they can also ignore that data when they find fit. I have a friebd who would travel with car from Spain, to pretty much the rest of Europe, but most if the time he would be chilling in his house in Lisbon, mostly for that 0 crypto gain tax. Spainish authorities made the claim, that there is no proof that he ever left the state for more than 180 days. The issue is, that they really loose nothing if you prove them wrong. It's juat another work day withing the budget. And they will come after you all the time. But if you fail, since the case can be dragged for years, you will have to pay some veeeery large fines with interest. Saying "I was with a car", for them means that you can get in and out all the time. It actually helps their case. Saying "but my phone was with me", for then is "well prive it" and in the off chance you get what you need from your phone operator, the clainlm is "SIM cards can be cloned" and they will need more thab that. He got screwed big time with the GPS, since he has a "degoogled" phone and all his "tracking history" couldn't be verified by a third party. At the end he got saved by a local grocery story next to his place in Lisbon, which kept records for almost an year and they were friendly, but only after many travels, talks, lawyer fees and whatnot. Ao there it is - they can use whatever they want againts you - cherrypick what they need and ignire the rest. You don't have their level if access to information and everything you present as evidence, will go trough a process and there is a big chance that it will be dismissed as weak or unrelieble.

[@briankim1466]

No, vacations don’t count as time away. If you’re living in Spain but visit Paris as a vacation, then that still counts as time in Spain. If you have a home in Paris, that’s a different story.

[@ibrahim_sultan101]

I am sure Shakira can demonstrate through her passports exit/entry stamps and airline travel iteneraries that she'd spent less than 183 days in any 12 month period. A person with such an impeccable tax efficient structure surely has tax advisors breathing down her neck planning her tax residency in various countries immaculately down to the day.

[@gm-zz8so]

Unless your "in love" hahahahahahah

[@ShaferHart]

Guess she didn't because she had to pay everything the Spanish tax authorities asked of her in order to avoid jail lmao

[@w3s77]

You've never met one of these people with this kind of ego. They believe they are above the law.

[@ibrahim_sultan101]

@@ShaferHart The rich believe they are more privileged and entitled than middle & lower income class people, they believe it's smart to avoid paying taxes and instead let middle/lower class people foot the tax bill, yet when it comes to national security, services etc.. they expect to receive them equally as if these institutions run on air.

[@Evangelionism]

​@@w3s77 Which laws were broken? In my view, all she did was exploit available legal and financial mechanisms through planning, and tax avoidance is not illegal.

[@ChefEarthenware]

Smart girl, but she should have adopted the "Shirley Bassey" policy - only go outside your tax residency when you need to. But I do admire her "all tax is theft" approach.

[@szn7548]

Dont you people understand that she has 0 clue about finances, she just has like 10 lawyer time cooking these up.. if u think she does her own taxes yall crazy

[@DanteSlappedyouwithfacts]

Her accountant is smart

[@DanteSlappedyouwithfacts]

@@szn7548their still stuck in the marrix

[@MelonPython]

She should've nominated a director for her "off-shore companies" :D

[@MrSB007]

​@@szn7548 ppl are dumb and that's what helps the rich

[@schadenfreude000]

Even if she'd spent fewer than 183 days, the Spanish government still could've argued that she was a tax resident (since she clearly lived there), but it would've been more difficult. They went with demonstrating 183 days because that was the simplest method for establishing tax residency. If she'd spent under 183 days, they still could've declared her a tax resident and forced her to backpay, but probably without fraud charges since there would've been more reasonable doubt that she was genuinely following the rules. Once she went over 183 days she was clearly and unambiguously a tax resident.

[@ShaferHart]

Interesting thanks. The fraud component is why the fine is so large + jail sentence.

[@user-bk4jh7yy3w]

yeas, sfe ia a confirmed tax evaderess

[@samslaughter6613]

Trust the Spanish to squeeze some taxes out of people. The entire taxation system here is insane when my business is a bit bigger I will be doing a shakira aswel

[@macbrebonicks8668]

Oh, baby, when I evade my taxes It makes Spanish Authorities go mad So be wise (sí) and keep on (sí) Reading the signs of my body (uno, dos, tres, cuatro)

[@med87]

why did i read this with music!

[@seansingh4421]

@@med87because its illegal to not to bro

[@xporkrind]

Great video !!! Thank you for the amazing analysis.

[@charxmobile]

When governments act like the mafia racketeering you know it's time to move.

[@scopscorpion]

That's what you got out of the video?

[@YaroLord]

“Leave the poor multimillionaire alone!!!! Stinky government!!!!”

[@michaels4255]

Ha, ha! ALL governments are mafias! Taxation is an extortion racket. "Protection" money, but mainly that means the government will protect you from itself provided you pay up. But some of these governments are kinder and gentler mafias than others. It is a great racket, so great that if a government did not already exist within a geographical area, some mob boss would create it if some neighboring government/mafia did not take it over first.

[@michaels4255]

@@YaroLord That is one of the biggest drawbacks of being rich (not that I know from experience). First, you are a minority, and second, you are a privileged minority and thus the majority feels no sympathy for you. That can make you a prime target for the state. But sometimes the state goes too far and kills the geese that lay the golden eggs. No one gains from that, and yet it sometimes happens due to the sheer stupidity of many politicians. With intelligence falling in almost every country due to fertility being skewed in favor of the less intelligent and less responsible, I expect it will happen more often in the future.

[@harrybaals2549]

@@YaroLord NOOOOOO We need to take more of people's money to send to Ukraine NOOOOOOOOOO

[@Jay_red305]

50 percent?!? like she saved herself from theft

[@2011blueman]

In Europe it's more, and it's not 50% in the US.

[@Jenvlogs404]

Billionaires too, why preference to celebs

[@DreamerVic]

She was giving us warnings since the beginning with her album LAUNDERY SERVICE

[@skbuydens7717]

In Canada the numbers of days per calendar year for taxes is 180 days. I doubt that I will will be in Canada after this year ever close to 180 days for that reason.

[@wnose]

You also have to sever all ties - owning a home, keeping memberships, close family still living in Canada... Still makes you a resident for tax purposes.

[@ruthdenham8211]

Great video! I really have a question. For someone with less than $5,000 to invest, how would you recommend we enter the crypto market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach?

[@gregsmith1584]

My advice: for newbies to grow financially this year, invest. Saving is good, but investing elevates your finances. Why newbie make huge losses on trade is because investing without proper guidance can lead to mistakes and losses. that will stop you from trading, this has been one of the biggest problem to new traders, I've learned this from my own experience

[@margaret2276]

I agree, investing without proper guidance can lead to mistakes and losses. last year. I did so many mistakes but also learned so much from it, If you're new to investing or don't have much time, it's best to get advice from an expert.

[@Stephanie-lm4kt]

Nice. those who work with expert typically earn more than those who go it alone.

[@danielcurtis9926]

Having an investment advisor is the best way to go about the market right now. I was going alone, but it wasn't working. I've been in touch with advisor, and just last year, I made over $300,000 capital growth.

[@danielcurtis9926]

That's the more reason I prefer my day to day investment decisions being guided by an advisor. I been using my advisor for over 2years+ and I've netted over 1.2million.

[@KeysToTheCastleMusic]

All she has to do is become a multi-billion dollar corporation that gives donations to politicians and not only will they not care about her 2% tax rate, but they'll probably also give her taxpayer subsidies on top of it lol

[@ShaferHart]

If she lived in the US she would not have a problem to begin with. She doesn't need to be a multi billionaire. The US doesn't have the same laws as the EU if it did Amazon would have to pay taxes.

[@deedee7780]

Sad but so true!!!!

[@PolishBehemoth]

lol😂

[@JK-br1mu]

Nearly all corporations pay way more than 2%, you're a clown. The few who get off either make very low profit, so there's not much to tax, or are into the green energy scam.

[@JoostEurovisionFans]

She did not do that. She had people with years of experience doing that for her. She is an artist, not an accountant or a tax advisor.

[@gi4dtv230]

It doesn't matter, she pays those people to do it for her.

[@Skinny_Pimp]

Really. I thought she got her accounting degree between hits.

[@JoostEurovisionFans]

@@Skinny_Pimp Yes, it helps her understand more about finance. But the strategy is done by professionals. Not herself as the video suggests. This is why people admire celebrities, because they portray them as allknowing beings. They have a whole management team taking care of 90% (food, clothing, bookings, photography, ads, etc)

[@Peglegkickboxer]

​@JoostEurovisionFans I'm not a tax specialist, and I know all about this system. Ignorance is not an excuse. Educate yourself about taxes, it's not very hard to do.

[@JoostEurovisionFans]

@@Peglegkickboxer I agree, you should educate yourself on all matters. But really... it is hard. Can you imagine working 40 hours a week and running a family with children?

[@zipinha]

It's crazy that a country wants to keep your intake made in other countries, not even made the money there...

[@Richest_Person_in_the_World]

The idea is that if you "enjoy" the street lamps and other tax-funded crap (by living in Spain) then you are the taxpayer there

[@ShaferHart]

It's actually smart if you want to stop tax cheats. If the US had the same laws Amazon would have to pay taxes there.

[@TheSpaceman332211]

You can't fuck over the EU when it comes to tax.

[@angelicamaria9148]

Specially Spain. Even since 15 hundreds, all the gold that you found in America, you have to give a % to the crown all you would go to court to explain. If found guilty, they would hung you. Nothing has change. She will do jail time, even if is at home and they will empty her bank account. They have put other famous Spanish people in jail for that. Christiano Ronaldo left the country before they put him in jail. They don't play games. They are more greedy than IRS and prosecutor hates Shakira.

[@szn7548]

You can fuck actually far more then in usa, alot of schemes possible and most countries only fine you, not like in states where you can get big prison terms

[@Zelielz1]

She could have left everything in Luxembourg…

[@lucristianx]

That’s because they’re a bunch of thieves

[@JoATTech]

Unless you are Bezos.

[@jamesdayringer710]

Taxes are modern slavery. We are taxed by governments and have no say in how its spent. She's absolutely smart with these income assets protections.

[@nenasiek]

Do u live in a democracy? If so you do have a say, u could argue that politicians arent doing a good job but thats on them

[@user-zu5do6ri6r]

We pretend to ne a democracy.

[@elpenprice679]

You can always not work 🤪

[@Revjuan14]

Absolutely Based , leave Shakira alone

[@gzoechi]

Why spare tax evaders? They are stealing from everyone.

[@DvdRa]

Oh, the government… how resourceful they get when they think (not even having a full guarantee, but just a thought) you owe them money. But when it comes to represent us well, and help us, they take their sweet time and most of the time they don’t even solve anything…

[@Stephanie-hj6hu]

50% is daylight robbery.. DAYLIGHT ROBBERY!!!! 😮You can't earn a $100 000.00 and only get $50 000 out of all that hardwork. Working is hard people to just be afforded the luxury of handing out half your life to other people for FREE!

[@2011blueman]

If you're only making $100,000 then your marginal tax rate would be 22% and your effective tax rate (i.e. the actual percentage of your income you pay in taxes) would be 14.26%. Even if you were making $10 million a year your effective tax rate would only be 36.55% and that's assuming it was all wage income and not capital gains.

[@AlgoFin]

@@2011bluemansure but that’s only income tax alone. You pay in many countries: 3. Value Added Tax (VAT) 4. Social Security Contributions 5. Wealth Tax 6. Inheritance and Gift Tax 7. Capital Gains Tax 8. Property Tax (IBI) 9. Municipal Tax on Economic Activities (IAE) 10. Transfer Tax and Stamp Duty 11. Excise Duties (on alcohol, tobacco, fuel, etc.) 12. Customs Duties 13. Environmental Taxes 14. Lottery and Gambling Taxes 15. Vehicle Registration Tax 16. Road & infrastructure taxes, etc

[@ShaferHart]

Repeat after me: I am free.

[@michaels4255]

@@AlgoFin I know, we are paying for all these public services with no competition to control quality or price, and some of these services we do not even need, and it is a huge chunk of most people's pre - tax income, and total cost of government based on actual expenditures goes up every single year, yet it is not even included in the CPI! It's a racket.

[@srami004]

Talk about a flawed statement. Shakira isn’t making 100k. She’s making WAYyyyyy more than that.

[@sengalkol]

Income taxation is somebulllllsssshhhhiiiittt

[@lucristianx]

30% off the top. Income, sales, and property.

[@stuffmcstuff399]

Nah Income Tax is a good thing, just lower the caps. What is bullshit is inherentance tax.

[@lucristianx]

@@stuffmcstuff399 abolish the income tax. If you feel so compelled you can still donate your money to the treasury department.

[@sengalkol]

@@stuffmcstuff399 agreed.. bad enough the person who passed away wills it to their kids and now the government wanted to tax it, that's just an insult to the family. I called it direct robbery with license.

[@w1z4rd9]

Please help. Nobody mentioned this. Shakira has a Green Card on the U.S. and they have no income tax treaty against the Bahamas. Did Shakira not live long in the U.S to not pay tax all the time or was the IRS so kind of it? It isn't mentioned in the video.

[@notwoke4788]

Green card holders are subject to US income tax no matter where they live. If they choose to stay outside of the US, they could lose the green card and be subject to exit taxes on their net worth.

[@user-bk4us9vv8t]

It's not US tax authorities who caught her, but Spain's. She was a resident of Spain, therefore they wanted her to pay tax in Spain.

[@marvinbrando722]

She doesn't matter. You got to live in USA more than 183 days in order to declare your income. That's not her or was not her case

[@w1z4rd9]

​@@marvinbrando722Doesn't that only apply if you were to go to the U.S and you aren't a resident yet?

[@thinkinenglish4877]

People who are US citizens have a duty to declare income to US but not green card holders. Unless I'm wrong.

[@111Econ]

Dispecable. I wish i had the money to do the same.

[@drz4073]

So wouldn't that 183 days be even more difficult if she was touring & supporting her album at the time?

[@ajuber876]

Damn haters. If it's legal let it be.

[@NutinDuin]

The error we make is focusing on the percentage rate of tax paid. What is more relevant is the total dollar amount paid. The value of a good or service is not on a sliding scale determined by the income of an individual. The 'fair' cost of a cup of coffee is not $2 for one person and $2000 dollars for another person depending on income, yet for some reason we think that same concept is 'fair' when it comes to the fee the state charges for the ( poor quality ) services it provides.

[@Sailing_Antrice]

She should have moved to the UK. We love tax avoidance here we even left the EU so that the ultra rich could continue to uses aggressive tax avoidance legally. The EU passed the anti tax avoidance directive so tax avoidance is much harder in the EU.😮

[@chesshooligan1282]

We love tax avoidance so much that we have the highest levels of taxation since WW2 and millionaires are leaving the country at record levels, and this is under a supposedly conservative government. Wait until Labour win the coming election. I don't know about you, but I'm out.

[@docbrown3139]

We already pay so much taxes buying food shopping gas rent/land tax and they even want to take the small amount of money left after all the expenses. And for what? What are they doing for the people? With the amount they take we should be living in a perfect system where’s our money going? We should be outraged. Want to stop wars? Inflation? Theft by politicians and corporations? Easiest way is the people boycott paying taxes all at once.

[@srami004]

Do research on Spain. Be aware that they have Universal Healthcare

[@nenasiek]

Schools, firefighters and roads are all paid for by taxes.. some countries can def cut down on beurocrats but taxes are benefitting all of us

[@docbrown3139]

@@nenasiek that’s my point we’re already paying for those things everyday, they have more than enough they shouldn’t be taxing people on income. With all that money nothing important seems to be done, our taxes are mostly used on investments for those who take it, its more like theft/scam at this point. Plus we should have the right to choose what we want to pay for. I personally don’t want to fund wars or experiments on nuclear weapons.

[@pbrown0829]

God forbid people keep their money.

[@DreamerVic]

Of course, we have to report to the thieves and they usually don’t allow competitors

[@PierreEss]

God forbid we have programs for the less fortunate. Oh, you'd like even more inflation I guess, because, "God forbid people keep their money"... Have you thought about living in Turkey?

[@srami004]

There’s always a price for living. Deal with it. Isn’t greed considered one of the seven deadly sins?

[@DreamerVic]

@@srami004 so we have to live in poverty?

[@alanjackson2540]

Was the Spanish investigator a Real Madrid fan?

[@Rainy_Day12234]

Spain has been very aggressive going after anyone that has spent time there. Be careful to not overstay within a year or they would come after you to.

[@michaels4255]

I think more and more heavily indebted governments will get aggressive in the future.

[@burada8993]

If she didn't send them all to herself and she chose to accumulate in luxembourg and invested using the luxembourg subsidiary, she would be object to low tax (for the small amount that she choses to pay her bills), isn't it?

[@burada8993]

How did you gather these data, especially about the day count calculation? I can intrapolate that the structure might be learned out from the panama leaks but how did you learn the rest?

[@tobias2688]

I still don't get why she would be liable to pay all taxes in Spain. Isn't it her vehicle in Luxemburg that's the true recipient of her earnings?

[@MichelePonte]

Good question. But probably she was paying something to herself for expenses and so on.

[@ShaferHart]

Because you can't avoid taxes in the EU as easy as you can in the US. If the US had the same laws (some are proposing it btw) Amazon would need to pay taxes.

[@castlerock58]

She was working in the US, on the Voice, and she does her recording in the US. She is probably close to 183 days in the US because she works there but not in Spain. She also must spend a lot of time in neither the US or Spain. She must be able to prove it with private jet or airline records. With her job, it is unlikely she is in any country 183 days. She does a lot of touring. She is a Colombian citizen who works in the US and around the world. She would have had to go through some immigration procedure to chance her main residence to Spain.

[@rafaelcosta3238]

"She would have had to go through some immigration procedure to chance her main residence to Spain" That is the problem, you do not have to change anything. The tax authorities decide if you are a tax resident or not.

[@javaremastered1530]

great and we general public paying 20 per cent tax

[@Revjuan14]

How about we change that instead of complaining about someone who’s doing something that we all should be doing

[@jimmoriarty4530]

You would change your when you are paying millions of dollars in taxes

[@hdj81Vlimited]

20? more 55% in Belgium, and on EVERYTHING you buy you pay another 21% VAT tax............THEN you pay at end off year also tax, insurance, tax for car, tax for electricity, tax for gas, tax for water, tax for solarpanels, tax for driving on road, tax for climate for older car, tax for building you have, tax for land you have...........later you must pay tax on PENSION, tax on life inshurance pay out 33%........ if you buy a house 10% total tax. house from 400.000€ = 40.000€ tax !!!!!

[@xiu-li]

I personally believe that evading tax is not a crime. It's her money, and she works hard for them.

[@jpb2366]

its 100% a crime. Shes a corrupt criminal. Pay your taxes like the rest of us

[@lelebella3252]

50% wtf why even work if you gotta give 50%

[@kaiaphasful]

Ive almost shed a tear but then i realized that she will still be stinkin rich after she paid her taxes like we others do

[@nyacoustics8373]

what if she live in one of the 50 states in the usa with all these arrangements in these foreign countries what would have been her tax rate?

[@marvinbrando722]

California and New York, for sure. Those states would've gone after her, guarantee

[@DeEmperor1]

What if the 183 days were stayed on medical grounds? Eg: She had a surgery in Spain and was hospitalized or on home recovery. Would that count too?

[@w3s77]

This was just for her album sales and similar, not from her concert revenues. Concerts fall under the same taxes as professional athletes "performance" taxes. She paid taxes in every country she performed a concert.

[@pacoramon9468]

Pique about to by trial for reviecing comissions for helping the Spanish Supercup to be played in Saudi Arabia. Poor kids could only see their parents from prison.

[@vesogry]

Don't lie she only pays 2% of income tax. There are 100 other taxes.

[@drjdmtuning4982]

Never do more than vacation in Spain. Spain has amazing housing and even a normal person could be subject to taxes. I discovered amazing real estate then like o always do I researched their tax laws nope don’t to it your social security pension everything is taxable…

[@w1z4rd9]

May I ask what has social security pension have to do with Spain specifically?

[@ShaferHart]

​@@w1z4rd9if you retire there and become a tax resident they will tax it as income.

[@jasonbuksh2958]

Staggering - charging someone that much for simply 'staying in their country' while she has probably spend millions in the country as well. Government acting like mafia racketeering and the attention is on Shakira

[@carlgrussendorf8849]

An actual genius!

[@benlessard74]

Money in her jeans back pocket did move a lot so its no big surprised that it can jump from one bank account to another.

[@ericpowell4350]

This isn't very smart for the Spanish government to do this. They're going to scare off high net worth individuals that want to spend money and invest in Spain. At best, they should make her pay a fine.

[@davidrhodes7655]

I'm sure she ain't the only artist to do that

[@cristianmercado6326]

stay on the move?.....Just saying

[@banditonehundred]

Now that’s what I call a strong independent woman. Well done and keep shaking it 🫡

[@barracuda008l4]

What she did is 100% legal, but Spanish there is no justice, but whatever they said is what must paid without considering the law... by the way, the residence only applies to income generated and repatriated

[@runalca]

Well what she did was completey legal, getting tax resident certifate from Bahamas but Spain tax authority all within their rights to make assessment of her tax residency as there are two many holes on her argument and honestly it is not that difficult to figure out Spanish authority position. The Spanish tax authority argument is valid on determing her actual place of resident based on other elements too. It could be the same argument HMRC or France government can make if someone travels UK to France or visa versa everyday during weekdays for his work in the entire tax year. Baseline is due to nature of her work, automatic resident test cannot be applied and other sufficient ties should be tested. Also, anti avoidance should apply in this as she cannot just leave her actual resident country for shorted period (in this case I highly doubt she even stay in Bahamas for a week in a tax year) to realise gain in another country. But I am certain Shakira can navigate this entire matter successfully as she is not having a decent time in personal life too. I really hope it is sorted sooner so that she can at least get relief on this matter.

[@attentioncestpaslegal7847]

She was living in Spain but did not pay taxes in Spain.

[@2011blueman]

What she did was in fact not legal. It was criminal tax evasion.

[@ShaferHart]

Sure, barracuda008l4, I'm sure your knowledge of the Spanish legal system rivals those of the prosecution and her very expensive lawyers lol. Her strategy was sound but she screwed up by becoming a tax resident of Spain. Hard not to become one when you have school age children there.

[@kayb4995]

What a hero

[@RasheedKhan-he6xx]

Just out of academic interest (I'm not in the tax bracket to actually worry, lol) what was the purpose of the BVI and Cayman Islands companies? Why not just take the payments from Luxembourg to the Bahamas? Indeed why not just own all the IP in a company in the Bahamas directly, without all the extra hops?

[@k.chriscaldwell4141]

The reason they are doing this is to make it easier for them to later go after MANY smaller fish using the same tactics and arguments. The smaller fish less able to defend themselves. They’ll “settle” with her, giving them the win, and then come down on a multitude of smaller fish like a block of granite.

[@xbeauxyeux]

BABE WE NEED AN UPDATE ON THIS PLEASE

[@mustardroshi418]

ILL DO EXACTLY WHAT SHE DOES BUT 150 DAYS IN 3 C. A YR

[@pablodono7227]

The only question is how such a stupid system can exist in which a person has to do all this stupid scheme in order to avoid the stupid world system.. Paying pique a plane to the Bahamas would have proven to be way cheaper.. So the lesson here is 1. World rent system is unfair and stupid 2. Shakira is only one of the many victims of this stupidity 3. Countries should attract people not do this 4. Every Spanish who can moves to andorra..

[@nourzakiofficial]

Forget Shakira! We need her TAX ACCOUNTANT/CONSULTANT

[@metalgirl]

I just heard a lawyer talking about this strategy. Seems like to me if you get tax council and the accountants/ lawyers are incorrect that they should get in trouble not you.

[@thatguy7085]

Passport can be tracked.

[@JossyFoop]

I feel like Shakira should be allowed to avoid tax it just makes sense to me

[@audreydupuy2628]

The spanish claim os totally valid. Anyone declaring residency somewhere for tax incentives knows they have to spend X amount of days in the country or else they are subject to the tax rules of tue country where they are spending the most time. She just thought authorites wouldn't care probably. Idk why people with that much money try so hard not to contribute. Meanwhile an average worker not at all as wealthy has to contribute way more of their income for the country they live in.

[@ThatAnnoyingStepdad]

Moral of the story: Just pay your taxes like everyone else

[@felixumukoro4119]

Yeah, allow the THIEVES (government) steal your money.

[@ThatAnnoyingStepdad]

@felixumukoro4119 hardly stealing, it's a part of the system designed to create the public services and infrastructure you need to live your life

[@felixumukoro4119]

@@ThatAnnoyingStepdad Yeah, infrastructure (supporting the extravagant lifestyle of government officials). I can see the infrastructure.

[@ThatAnnoyingStepdad]

@felixumukoro4119 that happens but you also need road's, hospitals, schools etc, all which comes from taxes. Why should she try get away with paying 2% when the rest of us have to pay at least 20%?

[@felixumukoro4119]

@@ThatAnnoyingStepdad How much is your 20%?😂

[@SamDustin0077]

How exactly do they spend the money they hide?

[@szn7548]

U evade income tax, but you ofc pay vat and stuff. And ur not a resident

[@chisomo8088]

However she wants, considering she’s worked for it

[@BengVideo]

I hope she gets a safety Tax bill !!!

[@zeevdoob2078]

Why there are still reach people in countries like Spain. Such countries should be punished by capital and income drain.

[@mrbabyears]

Brah is fascinating... i see you dont make vids often..

[@judiasverdes9585]

Whilst 50% is ridiculous, a billionaire wanting to reduce taxes to 2% shows incredible greed. Btw who of us commons pay 2% off their salary??

[@goyslop-consumer]

if you're smart you would employ the same strategies: write off expenses, invest your money, debt leverage and more.

[@IGotTheNewness]

@@goyslop-consumerExactly!! I don’t see how people look at this and say “OMG, they’re greedy!” The average American citizen is capable of doing this as well. Reducing my taxes from 50% to 2% sounds like a genius fucking move 😂🔥. She literally only got caught up cause she stayed too long in one spot. Yeah.. I’m learning this tax strategy NOW! 🙌🏽😂🔥

[@othername2428]

​@@IGotTheNewness YES it's a genius move. YES I would do it too if I could. NO the average citizen CANNOT do it because it costs tens and tens of thousands of dollars in lawyer and CPA fees.

[@rafaelcosta3238]

The 2% she pays more than covers 10 times the costs the government has with her. Most normal people could pay 50% of their salaries and still not cover it. But the people that do not carry their weight want the people that carry theirs to carry even more. But somehow she is the greedy one?

[@calidreams5379]

@@goyslop-consumerIt’s not tax that is the problem, it is how it is managed and spent that is a problem. Without tax, in an everyone for themselves society, there would be anarchy. No roads built, no public schools, no regulations, no law enforcement, no judicial system, etc. I suppose whoever has the fastest gun will win. Taxation is stealing if the funds only benefit certain people and not all people. That being said, how much tax incentives do major corporations receive while using loopholes to pay very little or no tax? She is talented and I’m sure she has worked very hard for her success but to says she’s carrying her weight plus others is rather obnoxious. I say the doctors who work to save lives probably carry their own weight and hell of a lot more than she ever will regardless of how much more she makes. That doctor pays 45% to 50% in tax!!!

[@gulfmen86]

wait can someone explain something... how does she not owe the US? Is it because she technically resides in the Bahamas? So she doesnt live in the US at all? Also, is she a US citizen?

[@user-dj1gv6dn7p]

I don't get why she's subject to tax in Spain when she doesn't earn money there all monies are from abroad

[@2011blueman]

You pay taxes in the country that you live in. What don't you get about that?

[@rafaelcosta3238]

@@2011blueman There are countries with a territorial taxation system. You can live there but if you do not have income generated there you do not pay taxes on it. Which is fair. Greedy Western countries with their broke welfare states want people to pay taxes on money they earned abroad. They will suffer because more and more wealthy people will leave.

[@anonymous6594]

Tax residents of Spain are taxed on their worldwide income. The corporate structure she setup was good but she remained in Spain most of the time and not the tax residence that she claimed which was the Bahamas.

[@krellin]

The real question is why are there people OK with 50% robbery?

[@sanukumar1778]

THANKS THE REAL CPA IT WAS REALLY IMPORTANT TO ME AND ONE DAY I WANT TO BE THE RECENT MAN IN THIS UNIVERSE

[@SH57578]

I don’t know Shakira, but I trust her over Spanish tax authorities.

[@lhffan]

If they want to fix this its so easy to do. Takes one day. And tax is collected from all evenly. Cant go around it also.

[@vmoses1979]

If little people pay 50% Shakira can damn well afford to pay up. Gotta give it up to Luxembourg and how they're undermining the revenues of their fellow EU partners.

[@edross2826]

And that's how you beat the system, ladies and gentlemen.

[@serge8085]

"Shakira", if you mean her financial advisors, then yes they are very good

[@UKindness4]

You mean like bankers and Private Equity? Bezos, Musk, Gates, Buffet, Schwarzman and Larry Fini? Leave her alone!

[@JoATTech]

Anyone with a right mind will do the same. Is Spain giving her anything to make her songs better? Doubt it ... yet they want her money ... I guess this tax auditor or Spanish IRS worker is so proud of himself :D.

[@gjoka3001]

smart move

[@stefanc4520]

I like how the go after "big n bad" Shakira with so much vigour yet have the energy of a sloth for Billionaires who avoid amounts equal to Shakiras net worth daily 😂

[@MattC-wf4vk]

It's her hips that don't lie.

[@JacobB559]

Shakira Shakira

[@James-ic1mp]

Not sure why Bahamas, British Virgin Islands AND Cayman Islands were needed. I suspect one of them would have done?

[@michaels4255]

The narrator said just one would not work, but the reason why is not clear.

[@zdrux]

Why go through British Virgin Islands, Cayman Islands, and Bahamas when she could just be in Bahamas? Did I miss something?

[@andresg297]

Good for her. Everybody should have the ability to do the same.

[@Play_Streams]

The authorities are angry she used their own systems against them.

[@georgesamaras2922]

buy a yacht, parking it in intenational waters

[@mocifus13]

That was a painfully expensive relationship

[@DubAGoor98]

Moral of the story- travel to Europe as a tourist and live in the USA or UK

[@devinerapier3776]

whoever is her accountant/financial lawyer, give them pat in the back

[@jiminycricket1593]

Shakira should pay her fair share.. am I right liberals???

[@user-tz5uq2bt1s]

None of these absurd tax structures and investigations would be necessary with a simple Georgism tax system. It's impossible to avoid.