We Follow The Law On Tax Google's boss has defended its tax arrangements, insisting that the internet search engine giant follows the law. Chief executive Eric Schmidt hit back after Ed Miliband claimed it was wrong for the firm to go to "extraordinary lengths" to limit its payments. Mr Schmidt insisted taxes were a matter for governments, although he admitted the current international regime had to change. Speaking at the company's Big Tent conference in Hertfordshire, he said: "Trust me we did not design this structure. It would not have been designed this way by a computer scientist I can assure you, but the fact of the matter is these are the rules. The executive added: "Google is absolutely following the tax laws of the countries we are operating in. Taxes are not a choice. Taxes should not be up to Google, Google is following the international tax regime. If (that) changes, we will absolutely follow it. Asked whether Google was "out-manoeuvring the Government," Mr Schmidt said: "Governments have a lot more power than we do. We have to follow the law. If the law changes, we will absolutely follow it. We don't negotiate taxes, they are the law. You don't say: 'That's my offer."' Google boss Eric Schmidt has defended his company's tax affairs Earlier, the Labour leader quoted Google's motto 'Don't be evil' as he highlighted the firm's £10m corporation tax bill in the UK for 2006 and 2011, during which it made revenues of £11.9bn. He said: "I can't be the only person here who feels disappointed that such a great company as Google, with such great founding principles, would be reduced to arguing that when it employs thousands of people in Britain, makes billions of pounds of revenue in Britain, but pays just a fraction of that in tax. So when Google does great things for the world, as it does, I applaud you. And when Google goes to extraordinary lengths to avoid paying its taxes, I think it's wrong. Mr Miliband claimed a Labour government would simplify the tax system to foster a more responsible form of capitalism. He said: "We welcome Google's call for international tax reform. This is what Labour supports to ensure transparency, proper rules on transfer pricing and a crackdown on tax havens. But he added that firms also had to take responsibility, warning that their reputations would suffer if they refused to do so. Your employees want a culture where they feel they are doing the right thing. Your customers want it too," he said. Our economy needs proper tax revenues to pay down the deficit and fund the services upon which we all rely. Our society depends on the right messages being sent out from the top. And the reputation of business depends on the most prominent businesses doing the right thing. Labour leader Ed Miliband used Google's own slogan: 'Don't be evil.' His comments come days after MPs accused Google of being "devious, calculated and unethical" over its tax affairs. A whistleblower who worked at Google for four years also accused it on Sunday of running an "immoral" tax avoidance scheme for the last decade. Mr Schmidt met David Cameron in Downing Street earlier this week as part of talks with business chiefs about greater transparency. Google's specific tax issues were not raised by the PM but Nick Clegg says he spoke to the executive about the public's concerns, although aides denied it was a "dressing down." There is an ongoing row about the tax paid by major corporations, with Amazon, Starbucks and Apple also coming under fire. Asked if he saw multi-nationals like Google and Starbucks as "the banks of the past," Mr Miliband said: "I have deep problems about the culture, and I think the culture isn't that different to the culture we saw at the banks. I think there is a culture of irresponsibility among some of the biggest firms in the country, and that has got to change. His speech came as it emerged Fiat is moving part of its tax base from Italy to the UK, in a shift that highlights the complexities of international tax rules. The truck and tractor side of the business will take advantage of the UK's corporate tax rates which are lower than in Italy. Meanwhile, EU leaders are meeting in Brussels to discuss how to close tax loopholes and reform use of tax havens. The UK, Germany and France hope to reach agreements on tax at the G8 summit in June.