What you need to know

On Tuesday, Apple was ordered to repay as much as 13 billion euros ($14.5 billion) plus interest after the European Commission said Ireland illegally slashed the iPhone maker’s tax bill between 2003-2014. Here are some key questions surrounding the decision.

What has the commission ruled?

That Ireland provided Apple illegal aid through a favorable tax arrangement, which violated the European Union’s state-aid rules.

What period of time does the ruling cover?

The decision covers taxes which would have been due in 20032014.

How much tax does the commission say Apple paid?

It says Apple paid an effective corporate tax rate of one per cent on its European profits in 2003 down to 0.005 per cent in 2014.

How have Apple and Ireland reacted?

Apple and the Irish government have both vowed to appeal the decision.

Can Apple afford to pay the bill?

Easily. As of last month, Apple had $232 billion in cash, with about $214 billion of that being held overseas.

Who receives the money if Apple ends up paying?

The money gets paid to Ireland, which puts those funds into an escrow account and leaves it there until any appeal process has fully concluded. — Bloomberg