Margaret Hodge
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HMRC 'must fully investigate' Google, says Hodge

13 June 2013 Last updated at 08:10 BST

HM Revenue and Customs should "fully investigate" Google after information from whistleblowers "undermined" the firm's defence of its tax arrangements, a committee of MPs has said.

Google says that advertising sales take place in low-tax Ireland, not the UK.

But the Public Accounts Committee (PAC) said it had been told by ex-employees of the tech giant that UK-based staff are engaged in selling.

Google said it complies with all the tax rules in the UK.

Margaret Hodge, chair of the PAC, told BBC Breakfast that HMRC "must be much more assertive in challenging Google".