Google executive chairman Eric Schmidt has once again defended the company’s tax affairs in Britain by saying that it will pay more tax in the UK if the country’s tax laws are changed.

Schmidt told BBC Radio 4 that if Britain wanted to collect more tax, it should change the law.

"What we are doing is legal. I’m rather perplexed by this debate, which has been going on in the UK for quite some time because I view taxes as not optional. I view that you should pay the taxes that are legally required," Schmidt said.

"If the British system changes the tax laws then we will comply. If the taxes go up we will pay more, if they go down we will pay less."

Google has been criticised for allegedly avoiding tax in the UK by reportedly generating more than $18bn in revenue from the country’s sales between 2006 and 2011 and paid just $16m in taxes.

Earlier this month, the UK Public Accounts Committee accused Google of manipulating its business in the country to avoid paying taxes.

A former Google employee, Barney Jones, has also said that he will provide evidence to the UK tax authorities regarding how the company avoided paying taxes in the country.

Last week, the UK HM Revenue and Customs (HMRC) said it is starting new lines of investigation into Google’s tax affairs upon interviewing Jones who gave anonymous evidence to parliament.