Asked about tax avoidance on ITV1's Agenda, Foreign Secretary William Hague said international agreements are needed to tackle the issue.
He said: "This really needs international agreement to really sort out the international company moving its profits from one country to another. You need international rules and George Osborne and the German finance minister are leading the way on this to get those international rules agreed...
"In the meantime, we've got the increased tax avoidance measures and this great thing of public pressure that you can feel whether from the audience tonight or the Public Accounts Committee.
"It will affect the sales of Amazon, Starbucks and whatever so some of them are feeling they have to do something about it anyway and that is a big improvement."
Watch The Agenda on ITV1 at 10.50pm.
– Director General of the Institute of Directors Simon Walker
It is very frustrating for many companies who pay large tax bills that some multinationals are able to avoid doing so.
The solution must be simplifying the tax system, not simply hectoring from Westminster. If these firms are immoral to take advantage of tax loopholes, then politicians are surely immoral for creating the loopholes in the first place.
Taxes should be simpler to cut down on avoidance and relieve the burden our complex tax code puts on companies who do try to do the right thing.
The Chancellor vows to crackdown on big-name global companies and wealthy individuals who dodge tax bills in a bid to claw back billions of pounds for the Treasury.
Political Correspondent Libby Wiener reports:
It just could be that we are reaching something of a tipping point where the reputational cost to a business starts to look as if it might be more damaging than the financial cost. Gaining a reputation for avoiding tax, whether legal or not, is not something any business wants to have.
The Treasury has announced it will provide the HMRC with £77 million of new funding in this Spending Review period in a bid to clamp down on tax dodgers.
It is hoped the funding will help target offshore evasion and avoidance by wealthy individuals and by multinationals.
Asked whether David Cameron would back calls for a consumer boycott of firms which avoid tax, the Prime Minister's official spokesman told a regular Westminster media briefing:
The issue for Government is how we tackle that tax avoidance, and the Treasury have been setting out what we intend to do today.
What we have to do in Government is make sure we are tackling that kind of aggressive tax avoidance. We are doing that in a number of ways. We are bringing in a general anti-avoidance rule, we are working with other countries.
The question of a boycott was "an issue for individuals", the spokesman said.
Clearly, we think that all companies should make a fair contribution to taxes and clearly that's a view that is shared by taxpayers and consumers.
HMRC ensures that multinationals pay the tax due in accordance with UK tax law.
We have been very successful in reducing tax avoidance by large businesses in recent years.
We relentlessly challenge those that persist in avoiding tax and have recovered £29bn additional revenues from large businesses in the last six years, including £4.1bn in the last four years from transfer pricing enquiries alone.
These figures speak for themselves.
– HMRC spokesman
Corporation tax receipts are dependent on the wider economy and the corporation tax rate set by Parliament, which was reduced by 2 percentage points for 2011-12.
Exchequer Secretary to the Treasury David Gauke said the Government is "determined to ensure that wealthy individuals, multi-national companies, all tax payers pay their fair share".
Totally unscientific but interesting - lots of you this morning say you have stopped using Starbucks, cut Amazon back too, but still rely on Google.
Public Accounts Committee chair Margaret Hodge, has today paid tribute to the role of the press in uncovering the big-name multi-nationals as tax dodgers.
Speaking to Daybreak she said: "[In the wake of the Levenson Inquiry] this was investigative journalism that found out what was happening with Starbucks, Google and Amazon.
"We took that up and exploited it."