Google was today branded devious, calculating and unethical as furious MPs stepped up pressure on the internet giant over its efforts to shelter its multi-billion profits from UK taxes.

At a stormy session of the Commons Public Accounts Committee (PAC), members reacted with incredulity to claims that the company – which paid just £6 million (€7,114,000) in corporation tax in 2011 – did not carry out advertising sales in the UK, despite generating more than £3 billion (€3,557,000) a year in revenues.

Vice president Matt Brittin, Google’s head of operations in Northern Europe, insisted that he stood by evidence he gave last year that all the company’s European sales were routed through its operation in Ireland and so were not liable to UK taxes.

But he was told by committee chairman Margaret Hodge: “You are a company that says you do no evil and I think that you do do evil in that you use smoke and mirrors to avoid paying tax.”

Earlier, Mrs Hodge – who also strongly criticised the performance of HM Revenue and Customs – said the committee was now considering recalling Amazon to give evidence following the disclosure that it paid just £2.4 million (€2,846,000) last year in UK corporation tax, despite sales of £4.2 billion (€4,981,000).

There was further embarrassment for HMRC today when a High Court judge ruled that a “sweetheart” deal with bankers Goldman Sachs had been procedurally flawed, even though it was not unlawful.

Listing a series of failings Mr Justice Nicol said the then head of HMRC, Dave Hartnett, had been wrong to take into account the “potential embarrassment” to Chancellor George Osborne if the settlement, worth up to £20 million (€23,713,000), did not go through.

Meanwhile it emerged that the coffee shop chain , Starbucks, has yet to hand over the £20 million voluntary tax which it announced it would make last December. A spokesman said talks with HMRC were “still ongoing”.