Major mining and technology companies will be called on to explain their tax arrangements, with the launch of a Senate inquiry into corporate tax avoidance this week.

Greens leader Christine Milne initiated the inquiry – to be led by Labor senator Sam Dastyari - and has received the support of the Federal Opposition.

The Senate Economics References Committee will examine the adequacy of Australia's tax laws, the role of the Australian Tax Office in collecting from multi-national corporations, and seek ways to deter profit shifting and tax avoidance.

Technology and mining giants like Google, Apple, Microsoft, BHP Billiton, Rio Tinto and Fortescue Metals Group are expected to give evidence.

“I want to hear why it's not reasonable for us to be able to know all the subsidiaries they have, where they are located, what their practices have been in terms of their profit shifting,” Senator Milne told the ABC.

“It is time that we got to the bottom of the extent to which both Liberal and Labor governments up until now have continued to allow these corporations to rip off the Australian community.

“It has been a case of taxation by negotiation, rather than taxation according to the law.”

Senator Milne says she also wants to know why the Australian Tax Office does not provided estimates to Parliament of how much potential revenue had been foregone.

Treasurer Joe Hockey has indicated that the upcoming Federal Budget could include new measures to reduce tax minimisation through transfer and profit shifting.

Some of the companies, including Google and miner Newcrest, have already been criticised for not providing the inquiry with specific information about their effective tax rates in early submissions.

The inquiry will begin its public hearings in Sydney on Wednesday.