The UK Public Accounts Committee (PAC) has accused Google of manipulating its business in the country to avoid paying taxes.
Google reportedly generated more than $18bn in revenue from the UK sales between 2006 and 2011, but paid just $16m in taxes.
Google UK chief executive Matt Brittin was called back for the second time to testify after a Reuters investigation highlighted inconsistencies in the company’s tax arrangements in the UK.
Brittin denied allegations of misleading parliament and stood by his claim he made in November 2012 that the company was not taxed on the profits of its advertising business in the UK, because the sales were made from Ireland.
Brittin was quoted by the Financial Times as saying that, "We comply fully with the laws that are set down by politicians. Tax is not a matter of choice, tax is a matter of following the law."
PAC chairwoman Margaret Hodge said: "You are a company that says you do no evil and I think that you do do evil in that you use smoke and mirrors to avoid paying tax."
Hodge added that the company engaged in devious, calculated and unethical behaviour.
Apart from Google, Amazon’s tax arrangements in Britain are also continued to be under scrutiny after the Guardian reported that the company’s UK subsidiary paid £3.2m of tax, despite generating £4.2bn sales in the country
Amazon has also reportedly received £2.5m of government grants in the UK.
