The influential House of Commons Public Accounts Committee has described Google's explanation of its tax arrangements as "deeply unconvincing".
The Internet giant pays no corporation tax in the UK because, it says, sales take place in Ireland, where taxes are lower.
This report is by ITV News Business Editor Laura Kuenssberg:
Speaking to ITV News, Chief Executive of Sainsbury's Justin King says there is a big debate to be had about "levelling the playing field" for tax between high street retailers and those that operate solely online.
– George Bull, Tax expert
It's very dangerous for politicians to bypass the tax office and bypass the judges and say 'we the MPs don't like the result'. At the end of the say they made the law.
If they don't like the results of the legislation they should change the law.
The chair of the House of Commons Public Accounts Committee has said that she thought Google UK boss Matt Brittin's appearance before MPs was "completely unconvincing".
Margaret Hodge also said it was clear from investigative journalism by Reuters and evidence from whistleblowers that most of the company's sales were generated in the UK rather than Ireland.
– Treasury spokesman
This Government is committed to creating the most competitive corporate tax system in the G20, but this goes hand-in-hand with our call for strong international standards to make sure that global companies, like anyone else, pay the taxes they owe.
The UK, along with Germany and France, has since last year been leading the efforts through the OECD to modernise the international tax rules and we have put tax and transparency at the heart of the G8 agenda which we will chair next week.
– Google spokesman
As we've always said, Google complies with all the tax rules in the UK, and it is the politicians who make those rules.
It's clear from this report that the Public Accounts Committee wants to see international companies paying more tax where their customers are located, but that's not how the rules operate today. We welcome the call to make the current system simpler and more transparent.
In May, MPs accused Google UK boss Matt Brittin of "calculated and unethical behaviour in deliberately manipulating the reality" of the tech giant's business for tax avoidance purposes.
In response, Mr Brittin denied the accusation and insisted: "We comply fully with the laws that are set down by politicians. Tax is not a matter of choice, tax is a matter of following the law."