US-based coffee chain, Starbucks has not paid any corporation tax in the UK during the previous three years, according to a new report.

The company did not pay any corporation tax in the country even as its sales rose £398 million. A report following an investigation by news agency Reuters of four years showed that the company paid just £8.6m in corporation tax in more than 14 years and did not pay a dime during the previous three years in the UK.

The report found that the company's total sales since 1998 were more than £3 billion. However, the coffee retailer paid less than one percent of the total sales to the country. Starbucks released a statement saying it has paid and will it will continue to pay fair amount of taxes required as per the regulations in the UK.

Experts say that Starbucks is not doing anything illegal but are using the system in such a way that it could avoid fair level of taxes. They say that the system is inappropriate as larger firms like Starbucks located get away without paying any taxes while their much smaller rivals, home grown cafes pay percentage of profits as taxes to the state.