The European Commission will today find that Apple owes the Irish State “billions of euro” in back taxes when it rules that the technology giant’s tax arrangements in Ireland constituted a form of illegal state aid.

The amount of tax the commission will say that Apple owes the Irish exchequer is much larger than the amounts recently anticipated by the Government.

The Apple tax ruling The EC issued a ruling on August 30th in relation to the tax arrangements of Apple in Ireland, where it has its European HQ. The EC said Apple had been granted selective treatment by Ireland through two tax rulings in 1991 and 2007. The EC has ordered Ireland to recover up to €13 billion from the tech giant. Minister for Finance Michael Noonan indicated Ireland would appeal the decision "to defend the integrity of our tax system; to provide tax certainty to business; and to challenge the encroachment of EU state aid rules into the sovereign member state competence of taxation”. Q&A: Cliff Taylor answers the key questions I found this helpful Yes No

It is likely to lead to significant political pressure on the Government, which has made clear its determination to fight the ruling and so avoid receiving the massive tax windfall.

The ruling, to be announced in Brussels today, will not stipulate a figure for the amount of tax owed, but will lay out a process and a formula by which the unpaid tax should be calculated.

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“They are making up new rules for international tax,” said one Minister last night. “They are trying to make us tax Apple for stuff that doesn’t happen here. It’s nonsense.”