David Cameron insisted he has never been lobbied on the controversial Eurobonds scheme which, according to reports, high-street companies are using to avoid tax.
The Independent claims the taxpayer is losing out on £500 million-a-year as some of Britain's best known high-street chains, including Nando's, Maplin and BHS, cut the amount of profit they are taxed on by borrowing from their owners through the Channel Islands stock exchange.
The newspaper claims the Government knew about the "loophole" but decided not to close it.
Mr Cameron said the Treasury had "listened very carefully" to the arguments and made its decisions on the scheme .
Labour's Seema Malhotra (Feltham and Heston) asked Mr Cameron during prime minster's questions in the Commons : "Yesterday the Independent reported the Government's failure to close the quoted Eurobond tax loophole which could be losing the Exchequer £500 million a year.
"Have you ever been lobbied on this loophole and will you now pledge to close it immediately?"
Mr Cameron replied: "To my memory I have never been lobbied on this issue, I looked at it this morning, the Treasury has listened very carefully to the arguments and has made the decisions for the reasons that you know."