Labour leader Ed Miliband said it was "wrong" that Google had gone to "extraordinary lengths to avoid paying its taxes."
In a speech at Google's big tent event, he said: "I can’t be the only person here who feels disappointed that such a great company as Google...will be reduced to arguing that when it employs thousands of people in Britain...it’s fair that it should pay just a fraction of one per cent of that in tax.
"So when Google does great things for the world, I applaud you but when Eric Schmidt (Google's executive chairman) says, its current approach to tax is just 'capitalism', I disagree.
"And it's a shame Eric Schmidt isn't here to hear me say this direct: When Google goes to extraordinary lengths to avoid paying its taxes, I say it’s wrong."
More top news
Here's everything you need to know about the Libyan crisis and the announcement of a new national unity government.
Russia will pay the price for launching air strikes to prop up the Assad regime, the US defence secretary has warned.
'Vote Leave' - a cross-party campaign calling for Britain to leave the European Union in the forthcoming referendum - has been launched.