It is expected that Apple will be ordered to pay more than €1bn in taxes to Ireland

Apple will tomorrow be hit with a demand to repay more than €1bn £850m in unpaid taxes to the Irish state when the European Commission declares that its tax affairs in the country amount to illegal state aid.

The decision, which is likely to generate a fierce backlash from Dublin, Silicon Valley and Washington, will be Brussels biggest attack on alleged tax avoidance by US multinationals to date and is likely to trigger a quick appeal from both Apple and the Irish government.

Margethe Vestager, Europe s competition commissioner, is expected to declare that two deals struck in 1991 and 2007 between Apple and the Irish state broke EU competition law, giving the iPhone maker a competitive advantage not enjoyed by others.

Although the amount in question is unclear, it is expected that Apple will be ordered to pay more than €1bn in taxes to Ireland to account for the alleged shortfall.

The commission is expected to recommend a figure, although it will be up to the Irish state itself to calculate one.

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