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Shakira is in trouble. But how did she get there? For this, we will need to go back to 2008. This was the era where Shakira topped the charts, album after album. And with that, came a lot of money. She was named the top-earning women in Music by Forbes that year. And when you make that much money, its only natural to think about taxes. And think about tax, she did. If she was a tax resident of the United States and operated as a sole proprietor she would have been subject to a marginal tax rate of close to 50%. But the key was Luxembourg. Shakira incorporated a subsidiary called Ace Entertainment in Luxembourg and transferred over all her image rights from related Maltese subsidiary that Shakira herself wholly-owns. Shortly after incorporation, Ace Entertainment signed the 2008 contract with Live Nation, guaranteeing Shakira 300 million over 10 years. This would mean that all associated income would be flowing into Luxembourg rather than to Shakira herself. And this was purposefully