The Public Accounts Committee (PAC) has said that it expects HMRC to move to prosecute large technology companies that pay low tax in the UK.

PAC chairman MP Margaret Hodge, said: “multinationals are using structures and exploiting current tax legislation to move offshore profits that are clearly generated from economic activity in the UK.”

The PAC described HMRC as being “too lenient” in its claiming of tax from large multi-nationals, even when corporations demonstrate they are following UK tax law.