Facebook’s corporate vehicles in Britain and Ireland have warned of “potential tax reassessments” dating to the start of the decade and earlier.

The company has declared in regulatory filings that it would defend “any and all such claims”. However, it has recognised a “possible, but not probable” obligation in relation to the matter.

A spokesman in London for the social media giant had no comment when asked last evening about its potential liabilities.

A fresh examination of recent filings in Dublin and London by Facebook follows Google’s £130 million (€171.8 million) settlement of a tax audit by the British authorities.

Google’s new arrangement with HM Revenue & Customs will lead to the company paying less tax in Ireland on the profits of its lucrative British business.

The Google deal prompted reports in Britain that Facebook and other Silicon Valley firms would soon follow suit with similar tax settlements to the London authorities.

In 2014, Facebook’s primary operating unit in Ireland paid €3.4 million in tax on a €12.5 million operating profit. The unit had revenues of €4.84 billion.

British chancellor George Osborne greeted news of the Google agreement late last week as a “victory” for action on aggressive avoidance. “We now expect to see other firms pay their share.”

London-based media took this remark to be a reference to Facebook, although Mr Osborne did not name the company. News that Facebook paid only £4,327 to Britain’s revenue service in 2014 led to heavy criticism last year as the business declared sales in that market of close to £105 million.

Like Google, Facebook makes use of a legal structure in which its expanding Irish unit acts as corporate headquarters for operations throughout Europe, the Middle East and Africa and other global markets.

This enables Facebook to benefit from Ireland’s low corporate tax rate and associated trapping in respect of business carried out in numerous other jurisdictions.

Contingent liabilities

Accounts for Facebook Ireland Ltd, signed off less than two months ago, took note of contingent liabilities which were not recognised in the financial statements as it was not considered probable that a settlement “embodying economic benefits” would be required.

“These contingencies relate to potential tax reassessments for years 2009 to 2014,” the accounts state, before going on to say any claims will be defended. The document did not say where the potential reassessments might arise.

Accounts for Facebook UK Ltd, signed off in September, contained the same note, but said the potential reassessments were for 2010 to 2014.

While Facebook UK incurred a net loss of £28.48 million in 2014, this division of the company made share-based payments of £35.44 million to staff.

Amid a storm of controversy in Westminster over the Google deal, the British government found itself on the defensive yesterday as it denied the company had agreed a “lower special rate”.

Treasury financial secretary David Gauke was ordered to the House of Commons to answer questions from MPs on the deal, which he hailed as “solid evidence” that firms were responding to strengthened tax rules in Britain.

His defence of the deal came as London mayor Boris Johnson hit out at the “derisory” sums paid in tax by some technology giants.

Britain’s public accounts committee will ask Google to testify about the agreement.

Meg Hillier, Labour party chairwoman of the committee, that Google and the tax authority should explain the “cosy deal.”