LONDON — Google Inc. has aggressively avoided paying corporation tax in Britain and its reputation won’t be restored until it begins to pay what is due, a U.K. parliamentary committee said Thursday, in the latest sign that governments around the world are stepping up scrutiny of the tax affairs of multinational firms.

In a strongly worded 64-page report, the public affairs committee also criticized the U.K. tax authority, Her Majesty’s Revenue and Customs, for failing to challenge Google GOOG, -1.66% about its “highly contrived” tax arrangement and called on it to fully investigate the Internet giant.