Facebook’s United Kingdom tax bill? Just $6632

The miniscule amount was paid on losses of £28.5m at its United Kingdom business, according to its latest accounts, up from £11.6m the year before.

With profits on its worldwide operations totalling £1.9bn previous year, Facebook’s tax contribution will undoubtedly tarnish its reputation in the United Kingdom and intensify the debate on how to ensure multinational corporations such as Facebook and Starbucks make fair tax contributions.

The revelation, in the Daily Mail, has caused outcry – with one MP saying that the company was “using elaborate corporate structures to avoid tax”.

Facebook paid just 4,327 ($6,632) in taxes in the United Kingdom previous year despite offering staff in London an average of 210,000 in pay and bonuses, the Sunday Times reported.

Ms Hodge said: ‘We have to take tough to crack down on this behaviour, and the United Kingdom should be leading the way on this issue’.

The organisation’s report is expected to tackle the many techniques used by large firms to whittle down their global tax bills.

The tax bill is up from last year – when it paid no corporation tax at all, for the second year running.

However, the OECD’s top tax official, Pascal Saint-Amans, has just announced “once in a century” review overhauling the system.

In a statement Facebook said it was “compliant with United Kingdom tax law, and in fact in all countries where we have operations and offices”.