Critics have dubbed the agreement, which emerged last week, “derisory" and a "sweetheart deal" and called on the government to go further.
Mr Corbyn repeatedly quizzed Mr Cameron over the deal at PMQs, claiming Google had made £6 billion profits in the UK between 2005 and 2015 but paid an effective tax rate of just three per cent.
He highlighted the mixed messages from the top of the Tory Party over the deal, with George Osborne initially describing it as a "major success", Number 10 later calling it a "step forward", and Boris Johnson labelling it "derisory".
Mr Corbyn said: "Millions of people are this week filling in their tax returns to get them in by the 31st," he said. They have to send the form back, they do not get the option of 25 meetings with 17 ministers to decide what their rate of tax is.
"Many people going to their HMRC offices or returning them online this week will say this – 'Why is there one rule for big multinational companies and another for ordinary, small businesses and self-employed workers?"'
Mr Cameron replied: "Let's be clear what we're talking about here, we're talking about a tax that should have been collected under a Labour government, raised by a Conservative Government, that's what we're talking about.”
Labour MPs repeatedly heckled Mr Cameron by sticking three fingers up at the Tory front bench and shouting “three per cent”.
He later added: “Let me say to him if like me he’s genuinely angry about what happened to Google under Labour, can I tell him a few people he could call.
“Maybe he should start by calling Tony Blair, you can get him at JP Morgan. Call Gordon Brown, apparently you can get him at a Californian bond dealer called Pimco.
“He could Alistair Darling, I think he’s at Morgan and Stanley but it’s hard to keep up. Those are the people to blame for Google not paying their taxes.”
A Labour spokesman confirmed after the exchanges the party wants companies to publish their tax returns, saying that it was “very much in favour of transparency”.
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