It is reported that a former executive at Google says he has 100,000 e-mails that show an 'immoral' tax avoidance scheme used by his former employer that has 'cheated' British taxpayers out of hundreds of millions of pounds.

Barney Jones was a Google sales executive from 2002 to 2006 and went public with some of the testimony behind a British parliamentary hearing last week.

He claimed the internet giant operated an elaborate system which diverts British profits through Ireland to the Bermuda tax haven. This prompted the chair of the public accounts committee, Margaret Hodge, to label the company as 'evil'.

Mr. Jones told The Sunday Times that he won contracts with major companies to buy advertising space in the UK but the deals were "closed" by staff in Ireland.

But Google chairman Eric Schmidt rejected the claims that the company is not paying their fair share of taxes, adding that Google "has always aspired to do the right thing". He also welcomed any plans to change international tax laws.

"Given the intensity of the debate, not just in the UK but also in America and elsewhere, international tax law could almost certainly benefit from reform" he said.

Mr. Schmidt is due to meet the British Prime Minister David Cameron at the quarterly meeting of the Business Advisory Group in Downing Street today.

Calls for G8 action

Meanwhile the UK Labour leader has promised action on the issue.

Ed Miliband said that if no deal is done to find ways of preventing multinational firms from exploiting tax loopholes at the G8 summit at next month, a future Labour administration would act unilaterally to make global firms operating in the UK be more transparent about their tax structures.

It is claimed that Google paid just stg£6 million in corporation tax in 2011 and did not carry out advertising sales in the UK, despite generating more than stg£3 billion a year in revenues.

Tom Bergin is a Reuters correspondent involved with the report which resulted in the follow up meeting between PAC and Google last week. He spoke to Breakfast here on Newstalk.