Accused paedophile Peter Scully is alleged to have carried out some of the most horrific sex crimes against children.

The 53-year-old Australian's alleged crimes are considered so monstrous that Philippine authorities are looking to reinstate the death penalty as punishment, news.com.au reported.

Scully is accused of carrying out sexual abuse and torture on young children and filming it before selling the films to paedophiles around the world.

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Accused paedophile Peter Gerard Scully is alleged to have carried out some of the most horrific sex crimes against children

A court heard on Tuesday Scully allegedly directed a video called 'Daisy's Destruction' where a baby girl was tortured by a masked and naked woman, allegedly one of Scully's two Filipino girlfriends, The Sydney Morning Herald reported.

The video is alleged to show the baby girl being tied upside down by her feet, sexually assaulted and bashed.

Footage featured in the film is said to be so horrific that a police chief labelled it 'the worst we have encountered in our years campaigning against child pornography'.

'I cried when I was watching them... in fact I feel like crying just now while talking about it,' prosecutor Ruby Malanog told the court, according to the Sydney Morning Herald.

'It was hard to believe what I was seeing... that somebody could do those things to children.'

Police say Scully ran a dark web child pornography website called 'No Limits Fun' where videos were sold for up to $10,000 a view to paedophiles in Europe and the Americas, according to news.com.au.

The 53-year-old Australian's alleged crimes are considered so monstrous that Philippine authorities are looking to reinstate the death penalty as punishment

He and his two alleged accomplices, Carmen Alvarez (left) and Liezyl Magallo (right), who are wearing masks to hide their identities also carried out the abuse

The masks the pair wore in the video as they carried out the alleged abuse

Scully is seen using a lighter, hot wax, barbed wire and sex toys in the videos on his alleged victims.

He and his two alleged accomplices, Carmen Alvarez and Liezyl Magallo, who are wearing masks to hide their identities also carry out the abuse on the baby and other children who appear in 'Daisy's Destruction' and series of other films.

Alvarez and Magallo have been charged with child exploitation.

Scully allegedly groomed his victims by luring them into his car by assuring their parents they would have food to eat and get a good education.

During his Tuesday hearing, Scully was seen laughing and joking with fellow inmates while he faced a Philippine court over six of the 75 charges that have been levelled against him.

Police say they also found a 11-year-old girl's remains buried underneath the kitchen of an apartment rented by Scully in the southern Philippine city of Surigao in February last year.

A court heard on Tuesday Scully allegedly directed a video called 'Daisy's Destruction' where a baby girl was tortured by a masked and naked woman

The video is alleged to show the baby girl being tied upside down by her feet, sexually assaulted and bashed

Scully is seen using a lighter, hot wax, barbed wire and sex toys in the videos on his alleged victims

Videos like this were allegedly sold to customers in Germany, the United States and Brazil

Scullt set up a cybersex business, filming girls as he had sex with them or used sex toys, police say

Investigators told Channel Nine's 60 Minutes he had filmed himself sexually abused and strangling her to death.

The little girl was also made to dig her own grave.

Scully was only caught after victims and cousins Queenie and Daisy, aged 9 and 12, made their break from him.

They were detained with dog collars and chains for five days.

The girls said they were forced by Alvarez to engage in sexual acts with each other as they were filmed by the Australian.

Scully was arrested last year in Malaybalay, another southern Philippine city.

He has plead not guilty to charges of rape and trafficking.

The Melbourne native fled to the Philippines from Australia in 2011 after he was charged with fraud, according to local investigators.

He then set up a cybersex business, filming girls as he had sex with them or used sex toys, police say.