Facebook could face grilling from MPs over corporation tax

Facebook's finances will be discussed by a Commons watchdog after it emerged that the firm paid just £4,327 in UK corporation tax last year.

Meg Hillier, chairwoman of the public accounts committee, said the amount — dwarfed by Facebook’s £1.9 billion global profit for 2014 — showed big business is “running rings” around the taxman.

It means the tech giant could be called in for a grilling in front of MPs.

Facebook’s latest accounts show that last year it made an accounting loss of £28.5 million in Britain. It paid out more than £35 million to its 362 British staff in a share bonus scheme.

Ms Hillier confirmed she would discuss the issue with committee members at its next meeting.

Facebook said: “We are compliant with UK tax law and in fact all countries where we have employees and offices.”