G20 leaders are backing a plan to stifle corporate tax evasion drawn up by the Organization for Economic Co-operation and Development, which targets tax loopholes.

At a news conference on the sidelines of the first day of G20 Summit in Moscow, the finance ministers backed a "fundamental" rethink of the rules on taxing multinational corporations. It aims to close loopholes used by companies such as Apple and Google to avoid billions of dollars in taxes.

The plan says the current system does not work, especially for companies that trade online. OECD officials said governments' frustration with companies' aggressive tax avoidance had created a "once in a century" opportunity to overhaul the rules.

"International tax rules ensure that business don't pay taxes in two countries. Double taxation - that's right, we should avoid double taxation. But unfortunately the rules have now produced double non-taxation which is what we are trying to fight now," said OECD Secretary-General Angel Gurria.

"It is clear that multinational companies developed an unprecedented know-how for minimising their worldwide tax pressure...certain big companies managed to have a three or four percent tax rate on their income worlwide," French Finance Minister Pierre Moscovici said.