ITV News Political Editor Robert Peston tweets:
Google will appear at Public Accounts Committee on tax, I have learned
The government has been criticised for a deal that lets internet giant Google pay £130 million tax on £6 billion profit - a rate of around 3%.
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The prime minister responded to Labour's questions about Google's "sweetheart" tax deal by blaming the previous Labour government for failing to collect funds from the internet giant.
"We're taking about tax that should have been collected under a Labour government," David Cameron told Labour leader Jeremy Corbyn at today's Prime Minister's Questions.
Watch David Cameron's passionate defence of tax collection under the Tories:
I'm absolutely clear that no government has done more than this one to crack down on tax evasion.
...We've put in place the diverted profit tax that means this company and other companies will pay more in future and more than they ever paid under Labour, where the tax rate for Google was 0%.
Mr Cameron also said that the Conservative party has raised an extra £100 billion from businesses by changing tax laws.
Mr Corbyn accused the prime minister of failing to answer his question - whether he disputes that Google is paying around 3% tax in the UK.
A former senior strategy adviser to David Cameron has said that there is a sense big firms appear to operate "above the law" as the Treasury faces further questions over its tax deal with Google.
Steve Hilton, who worked for the prime minister until 2012, told BBC Radio 4's Today:
There is a growing sense that companies that are so big and so dominant - not just in the marketplace but in the way they relate to governments, their lobbying efforts and so on - that they really are above the law.
In this particular case they have made clear that they were abiding by the law then, when the arrangements caused anger, and now that they have new arrangements.
...We have really got to make clear to businesses that they have a responsibility to behave in a way that earns public trust.
George Osborne has been criticised for a deal that lets the internet giant pay £130 million tax on £6 billion profit - a rate of around 3%.Read the full story ›
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Shadow chancellor calls for the National Audit Office to launch an inquiry into "derisory" tax dealRead the full story ›
Treasury minister David Gauke told MPs that while the issue would be raised, the UK remained constrained by European rules.Read the full story ›
Having vowed to shave £12bn from the welfare budget, tax credits seem like the easiest place to cut.Read the full story ›
The Chancellor has drawn up plans to allow parents to leave homes worth up £1 million to their children without paying inheritance tax, according to leaked Treasury papers.
The Guardian stated it had seen documents that also showed the inheritance tax bill on properties worth up to £2 million would be cut by £140,000 under the scheme.
The papers, marked "sensitive", note the main beneficiaries of the plan - which would cost the Exchequer almost £1 billion a year - would "most likely benefit high income and wealthier households".
It is understood the measure will not feature in George Osborne's final Budget of the current Parliament tomorrow, but could be taken up by the Conservatives if they regain power after the General Election.
A Treasury spokeswoman said they had no comment on the report.