PM calls for international crackdown on tax avoidance

PRIME Minister Malcolm Turnbull has told a business leaders meeting on the sidelines of the G20 forum that the world needs to crack down on multinationals avoiding paying tax.

He was addressing the so-called B20 forum after meeting Chinese president Xi Jinping yesterday and before the G20 leaders' meeting in the eastern Chinese city of Hangzhou.

Mr Turnbull said the answer to disenchantment with globalisation was to ensure that all countries cracked down on tax avoidance by multinational corporations.

"While we believe in lower taxes … paying taxes is not optional," he said.

"Businesses must pay tax. Everyone must pay tax."