Google's UK tax 'disproportionately small', says Public Accounts Committee

It said the sum paid by the US tech giant "seems disproportionately small when compared with the size of Google's business in the UK, reinforcing our concerns that the rules governing where corporation tax is paid by multinational companies do not produce a fair outcome".

In addition, the Committee recommended HMRC consult widely on the case for changing rules that protect corporate taxpayer confidentiality to make the tax affairs of multinational companies open to public scrutiny.

Google announced last month that it had agreed to pay an additional £130m in corporation tax for January 2005 to June 2015, following the conclusion of a six-year investigation by HMRC.

However, Chancellor George Osborne came under fire, with the sum widely considered derisory.

Meg Hillier MP, chair of the PAC, said: "Public anger has been palpable ever since this settlement was announced and we still don’t know the full details.

“Whether you call it secrecy or confidentiality, this lack of transparency does nothing to build confidence that big corporations are paying their fair share of tax. Google has been keen to parade its enthusiasm for simplicity in the tax system but the fact remains the company has chosen to set up a complicated tax strategy specifically designed to minimise its tax bill.”