Forty of Australia's biggest companies will be asked to explain their tax affairs to a Senate committee investigating corporate tax avoidance.

Companies shown, in a recent report, to have the lowest "effective tax rate" over the past decade and to operate the most subsidiaries in tax havens have been given the chance to outline their tax strategies before the committee decides which corporate leaders to call in to appear before public hearings.

Senate committee chairman Sam Dastyari has vowed to investigate corporate tax avoidance. Credit:Alex Ellinghausen

The Senate can subpoena witnesses and committee chairman Sam Dastyari has vowed to use that power if the inquiry encounters resistance from big business.

Companies that will be invited to explain their persistently low tax contributions, according to the report, include shopping centre company Westfield, building products firm James Hardie, motorway group Transurban, Sydney Airport, Telstra, SingTel and Echo Entertainment, owner of Sydney's Star casino.