Labour Shadow Chancellor John McDonnell has called for Virgin's founder and CEO Sir Richard Branson to be stripped of his knighthood.
Mr McDonnell claimed the billionaire wanted to "undermine our democracy" after Virgin trains released footage disputing Mr Corbyn's claims about overcrowding on one of its services.
Writing in the Sunday Mirror, Mr McDonnell called for an overhaul of the honours system, stating that former BHS boss Sir Philip Green should also lose his knighthood.
The Shadow Chancellor, who is running Mr Corbyn's leadership campaign said: "The whole purpose of the honours system is undermined when the rich and the powerful can collect their gongs without giving anything back. It's even worse when tax exiles are given honours."
He added: "It should be a simple choice for the mega-rich. Run off to tax exile if you want. But you leave your titles and your honours behind when you go."
A spokesman for the Shadow Chancellor clarified: "John believes that it should be for Parliament to ultimately decide who is or who is not stripped of their title, if enough members of the public campaign for it.
"But he would not support tax exiles or businessmen who mistreat their employees retaining their titles."
Labour MP John Woodcock, a prominent critic of Mr Corbyn, suggested the calls may have been sparked by Virgin's public spate with the Labour leader this week. He said: "Dare to question Saint Jeremy's version of the truth? John McDonnell will strip you of your knighthood."
