Singer Taylor Swift is facing legal action after allegedly keeping a $2.5 million advance for a Canadian concert which never took place.

According to a new lawsuit filed in federal court in New York, the Love Story hit-maker was handed the money upfront after she was booked to headline the Capital Hoedown show in Ottawa last August.

Organizers ended up scrapping the country music festival and Swift is accused of failing to return her payment.

A spokesperson maintains Swift did not make a deal with ticket company bosses and tells TMZ.com the star has not yet seen their complaint.

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