Apple tax: Why tech firm has been hit with £11bn bill

It’s a tax demand for the ages. The European Commission has ordered Apple to pay Ireland €13bn (£11bn) in back taxes after ruling that a so called ‘sweetheart deal’ struck between the two was illegal.

But the move could spark a damaging international trade spat. Here’s your cut out and keep guide to what could become a very taxing story… 

Why has the Commission ruled in this way?

The European authorities accused Ireland of helping Apple to avoid tax by means of a sweetheart deal that is in breach of EU rules. Commissioner Margrethe Vestager, who oversees competition policy, said this allowed Apple to pay an effective corporate tax rate of 1 per cent on its European profits in 2003, falling to just 0.005 per cent in 2014.

How will the money be repaid?

That’s up to Ireland. It is in charge of recovering the money the EU says is due

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