Apple turned over in Irish tax probe

European Commission opens investigation into Apple's offshore tax havens in Ireland

Apple could be forced to repay tax on billions of euros of revenues after the European Commission opened an investigation into "illegal state aid" deals between the Irish government and the US firm.

The investigation follows European governments becoming increasingly critical of tax arrangements by US technology companies to move revenues into low-tax countries, such as Ireland.

In 2013, the biggest US firms collectively added an extra $206bn (£123.95bn) to their offshore profit stockpiles based in low-tax countries.

Apple, whose international headquarters are based in Knocknaheeny, a suburb of Cork, claims it pays all taxes due.

Commission experts say it paid just 3.7 per cent tax on non-US profits of $31bn last year.

The Guardian reported the maximum Apple could be forced to repay by the European Commission is $800m, according to one expert.

The investigation run by the Commission could take up to 18 months and will initially look into deals between Apple and the Irish government in 1991 and 2007 and whether or not they constitute state aid.