Celebrities with offshore interests
They are some of the biggest names in entertainment, and all of them make an appearance in the Paradise Papers. Some do so by name, such as the “Ciccone, Madonna” listed in tiny print among the investors of a Bermuda company, while others are there by dint of the offshore entities they have backed.
Some of the celebrities’ interests are historical, others contemporary. Some are similar to those of the singer Shakira, who holds a substantial portion of her showbusiness earnings offshore.
Others such as Justin Timberlake and Nicole Kidman seem more interested in acquiring property in the Bahamas, and may have real estate or privacy reasons for registering companies in those jurisdictions.
Whatever the motive, there is nothing illegal about moving money offshore and nothing to suggest that any of those named had any unlawful purpose. But the industry has evolved and grown exponentially in recent years – and political and public attitudes to offshore regimes have changed equally dramatically.
The current political climate raises legitimate questions about the actions of wealthy and well-known individuals: what benefit they were hoping for and will they continue to use such vehicles following the Paradise Papers revelations?
Shakira
The Colombian singer-songwriter makes an appearance in the documents under her full name, Shakira Isabel Mebarak Ripoll. The Grammy award-winner, who released her first album when she was 13, is listed as a resident of the Bahamas even though she lives in Barcelona.
She is also the sole shareholder of Tournesol Ltd, a Malta company with €3m in share capital.
The Paradise Papers reveal that in June 2009 Shakira’s “musical assets, intellectual property rights and trademarks” were moved to Tournesol. At the same time the Malta-based business increased its capital with a share premium of €31m following a valuation of those musical assets by the New York consultancy Gelfand, Rennert & Feldman.
The €31m came in the form of an “interest-free loan agreement” from another Shakira entity in Luxembourg named ACE Entertainment. The loan was annulled in 2014.
A lawyer representing the singer told the consortium of journalists working on the Paradise Papers that Tournesol Ltd “fulfils all legal requirements. All of the corresponding information relative to this entity is public and transparent.”
Asked about her listed residence in the Bahamas, the lawyer added that as an international artist Shakira had lived in a variety of places “throughout her professional career and, in every case, has fully met the laws of all the jurisdictions where she has resided”.