Google has become the latest multi-national operating in the UK to defend it's tax affairs.

The company's executive chairman, Eric Schmidt, says the firm is playing a key role in the growth of the UK's high-tech business sector.

Google paid just £6million in corporation tax in 2011 but Mr Schmidt insists the arrangements "fully comply with the law."

They're the latest company to add their name to a long list of multi-nationals operating in the UK market under a questionable tax arrangements.

It emerged in October last year that Starbucks had paid only £8.6million in corporation tax in the 14 years.

The company reported losses to Revenue and Customs and therefore weren't liable to pay any taxes, however the coffee giant told investors it was still profitable.

Apple, Facebook and Vodafone have also come under the spotlight in relation to how much corporate tax they pay.

Corporate tax rates in the UK for companies making a profit of more than £300,000 are liable to pay 23%.