A former Google executive-turned whistleblower has accused his former employers of 'pulling the wool over the eyes of HMRC and the British public' in regard to its tax avoidance policies.

Barney Jones, who worked for the internet search giant between 2002 and 2006, is understood to be ready to hand over more than 100,000 emails detailing the company's reportedly 'devious, calculated and unethical' tax avoidance scheme.

In an interview with The Sunday Times, he said: 'It uses a concocted scheme to avoid tax. It's a smoke-screen to distort where the substance of its economic activity is really taking place.'

According to Jones, cash would be paid into a Google UK bank account, following the negotiation and signing of contracts with British customers by its London sales staff, but the deal would then technically be booked in Dublin to avoid paying tax to the UK Treasury.

When questioned by the Public Accounts Committee last week, Google vice president, Matt Brittin spent a great portion of the hearing explaining how Google paid low tax in the UK because sales in most cases occurred in Dublin. He said: 'What's very clear is no one in the UK team can execute a transaction. There's very good reasons for this - firstly, the rights to what we sell are owned by Google Ireland and is not a product on a shelf, but rather advertising on a platform built outside the UK.'

An HMRC spokesperson said: 'HMRC will not comment on a hypothetical scenario that appears to relate to the affairs of a specific company. The issues raised are highly complex, as we explained in our extensive evidence to the Public Accounts Committee this week, and a wide range of factors need to be taken into account in considering the jurisdiction where a transaction should be booked.

'If anyone - a current or former customer or employee of any business - has information they think can help us, we would be very grateful to receive it.'

Responding to the outburst by his former employee, Google chairman, Eric Schmidt, in a self-penned article for the Observer understood why it was that his company was 'at the centre' of the debate over corporate taxation. He said: 'Given the intensity of the debate, not just in the UK but also in America and elsewhere, international tax law could almost certainly benefit from reform.'