The search monster which is based in California diverted £1.6bn UK advertising revenues to its Dublin subsidiary. Google did however pay £141,500 in UK tax for the 12 months, which constituted interest generated by its cash pile in bank deposits.

Although the news prompted outcry from politicians who accused the firm of shirking its social responsibility, it is hardly surprising given the UK’s increasingly painful tax regime.

Vince Cable, the Liberal Democrat shadow Chancellor, said: “Avoidance like this is hard to stomach at the best of times. But when the country is in recession and everyone is feeling the pain, it really sticks in the throat – it means higher taxes for the rest of us.”

Which didn’t cop much slack with Google: “We comply fully with the tax laws in all the countries in which we operate. It would be wrong to think of Google’s revenues from UK advertisers as solely the result of operations carried out locally. We invest in R&D, data centres and other infrastructure on a global basis, and that then helps generate revenue in various countries.”