Google CEO Sundar Pichai has hit back at accusations that the global internet giant failed to pay enough taxes in Europe on Sunday, and warned of the potential fallout from Britain leaving the EU.

He explained that whilst Google respected tax laws, governments will need to do more in order to ensure 'better results'.

Pichai also stressed that the US company invested 'very heavily' in Europe and employed 14,000 people there.

Defence: Google CEO Sundar Pichai has hit back at accusations that the global internet giant failed to pay enough taxes in Europe on Sunday

As Google faces a raft of fiscal probes across the continent, Pichai told Germany's Welt am Sonntag newspaper: 'As a global company, we find ourselves between the conflicting priorities of international tax law.

'Based on the structure of existing tax law, most companies pay the bulk of their taxes in their home countries.'

He said, in remarks that were published in German, that Google respected the laws on the books, and that governments would have to take action if they wanted to ensure more revenues stayed at home.

Pichai added: 'Only the further development of the global tax system by politicians can lead to better results.'

When asked about Brexit following last month's watershed referendum, Pichai underlined the importance to Google of a 'unified digital market' in Europe.

He said it was a 'challenge' for a multinational company 'to come to terms with different laws and regulations in each country'.

Conflict: Pichai explained that whilst Google respected tax laws, governments will need to do more in order to ensure 'better results'

'This complexity makes greater engagement difficult, which also plays out in investment,' he said, stressing however that large companies were better able to deal with such issues than small firms.

European officials have raised questions about the tax liabilities of companies including Google, Amazon and Apple. Some firms have taken advantage of tax breaks offered from Ireland, Belgium and Luxembourg.

Google's offices in Madrid were searched in a tax probe in late June, just over a month after police raided the Internet giant in Paris in a similar investigation.

The European Union also filed new anti-trust charges against Google last week, piling pressure on the company over the alleged abuse of its market dominance.