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“With Germany and now France, we have asked the OECD to take this work forward and we will make it an important priority of our G8 Presidency next year.”Tonight Margaret Hodge, chairman of the powerful House of Commons Public Accounts Committee, which recently cross examined Google UK on its tax affairs said Mr Schmidt should be ashamed rather than proud of his company’s tax bill“For Eric Schmidt to say that he is ‘proud’ of his company’s approach to paying tax is arrogant, out of touch and an insult to his customers here in the UK,” she said.“Ordinary people who pay their taxes unquestioningly are sick and tired of seeing hugely profitable global companies like Google use every trick in the book to get out of contributing their fair share.

The internet behemoth managed to pay just £6m in corporation tax on £3bn UK sales in 2011 by routing the money through Ireland, then on to the Netherlands, and then to a holdings company in Bermuda.The issue will be raised by George Osborne when Britain takes over the chairmanship of the G8 and will also be investigated by the Organisation for Economic Co-operation and Development (OECD).Last week the Chancellor said he was committed to “leading the international effort” to prevent international companies transferring profits away from major economies, including Britain, to tax havens.“We will put more resources into ensuring multi-national companies pay their proper share of taxes,” he said.the last thing we want to see are innovation and particular products being stopped,” Eric Schmidt said at an event in Seoul to launch Google’s new Nexus 7 tablet PC.Global smartphone giants Samsung and Apple are locked in a long-running patent battle over design and technology in ten nations including the United States and Japan.

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