HM Revenue and Customs (HMRC) has been urged to launch an investigation into the tax affairs of Google by a group of MPs.
The Public Accounts Committee (PAC) said former employees of the company have confirmed it does sell in the UK, which means it ought to be paying more tax than it has been.
Google denies selling in the UK and claims it has been paying the right level of tax in the country. HMRC is yet to respond to the comments from the PAC.
Margaret Hodge, chair of the PAC, said: "Google brazenly argued before this committee that its tax arrangements in the UK are defensible and lawful."
Ms Hodge described Google's tax arrangement as "highly contrived" and accused the company of having set it up specifically to avoid having to pay corporation tax in the UK.
It does not seem as if this news has had an impact on the share price of Google, however, as stocks are set to open at 877.00 on the Nasdaq later today.
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