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US Attacks EC Over Multi-Billion Tax Probe

The US has attacked Europe's tax avoidance crackdown on Apple (NasdaqGS: AAPL - news) and other global firms.

It said the probe by the European Commission (EC) undermines the international tax system.

The EC is investigating alleged special tax treatment that certain EU countries gave Apple, Amazon and Fiat Chrysler.

The companies say their arrangements are legal.

But the US Treasury said the investigations are disproportionately targeting American companies.

Analysts at JP Morgan have estimated that Apple could face paying up to $19bn (£14bn) in back taxes.

If Europe recovers billions in taxes from US firms it could mean less revenues collected by Washington.

Robert Stack, the US Treasury's deputy assistant secretary for international tax affairs, said: "US taxpayers could wind up eventually footing the bill."

The US acknowledged the problem of alleged state aid being given by countries such as Ireland (Other OTC: IRLD - news) , Belgium and Luxembourg in the form of lucrative tax breaks.

But it criticised the EC's approach in planning to apply new rules to companies retroactively, and also accused it of overstepping its powers.

The EC denied it was targeting US companies and said it was a "standard feature" of European rules that companies would have to pay any benefits from tax breaks found to be illegal.