Apple and Dublin said the U.S. company’s tax treatment was in line with Irish and European Union law and they would appeal the ruling, which is part of a drive against what the EU says are sweetheart tax deals that usually smaller states in the bloc offer multinational companies to lure jobs and investment. For many technology firms like Google and Facebook, a key attraction is that Ireland allows companies to adopt tax structures which see them pay much less than the 12.5 percent headline rate. Apple reaction: Live updates 
 
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 "Member states cannot give tax benefits to selected companies - this is illegal under EU state aid rules," said Commissioner Margrethe Vestager. The U.S. feels its firms are being targeted by the EU and a U.S. Treasury spokesperson warned the move threatens to undermine U.S. investment in Europe and “the important spirit of economic partnership between the U.S. and the EU.” 
 
 Starbucks Corp has been ordered to pay up to 30 million euros ($33 million) to the Dutch state, while Amazon.com Inc and McDonald’s Corp are also under investigation by the Commission, the EU’s executive arm. In a letter to customers, Apple’s chief executive, Tim Cook, claimed the ruling could deal a blow to big companies investing in Europe: “Beyond the obvious targeting of Apple, the most profound and harmful effect of this ruling will be on investment and job creation in Europe. Using the commission’s theory, every company in Ireland and across Europe is suddenly at risk of being subjected to taxes under laws that never existed.” 
 
 The commission said Ireland’s tax arrangements with Apple between 1991 and 2015 had allowed the US company to attribute sales to a “head office” that only existed on paper and could not have generated such profits. Vestager said: “The commission’s investigation concluded that Ireland granted illegal tax benefits to Apple, which enabled it to pay substantially less tax than other businesses over many years.” 
 
 
 
 Vestager suggested other countries, including the US, might now examine how Apple did business within their borders. Slideshow (7 Images) 
 
 The Commission has previously said Apple’s tax treatment had been “motivated by employment considerations.” 
 
 Apple has said it paid Ireland’s 12.5 percent rate on all the income that it generates in the country. We will appeal and we are confident the decision will be overturned." Under U.S. tax law, Apple’s Irish profits are taxable if brought back to the United States – something the company would have to do if it wanted to use the money to pay dividends. The commission, which does not have the authority to go back any further, said it was up to Ireland to collect the tax from Apple. Irish Finance Minister Michael Noonan said he profoundly disagreed with the decision and in order to preserve Ireland’s attractiveness for investment he would appeal. He said: “The decision leaves me with no choice but to seek cabinet approval to appeal.
– Apple got some bad news out of Europe on Tuesday in the form of a massive tax bill. The European Union says Ireland has given illegal tax benefits worth up to $14.5 billion to the company and must now recover the money, plus interest. The penalty is unprecedented—Reuters reports that it's 40 times bigger than any other such fine levied by the European Commission. "Member states cannot give tax benefits to selected companies—this is illegal under EU state aid rules," said EU Competition Commissioner Margrethe Vestager, per the AP. She said a three-year investigation found Ireland granted such lavish tax breaks to Apple over many years that the company's effective corporate tax rate on its European profits dropped from 1% in 2003 to practically nothing—a mere 0.0005% in 2014. Both Apple and Ireland say they will appeal. CEO Tim Cook has previously called the tax inquiry "political crap," notes the Guardian, while Ireland says it threatens to torpedo its successful strategy of using low taxes to woo international business. "Apple follows the law and pays all of the taxes we owe wherever we operate," said the company in a statement, per the BBC. "We ... are confident the decision will be overturned."