Buffett refutes Trump tax claims with release of annual returns

US investment legend Warren Buffett has released his tax returns in response to claims from Republican presidential candidate Donald Trump that he had avoided paying federal income tax.

Trump mentioned in Sunday night's televised debate with rival Hillary Clinton that Buffett was one of a number of Democrat donors to use the "carryforward" rule to escape paying tax.

The New York businessman had admitted to taking advantage of the practice himself when asked by debate moderator Anderson Cooper.

In a statement released by the Berkshire Hathaway boss on Monday, he said that he has paid his taxes every year since 1944.

"I have paid federal income tax every year since 1944, when I was 13. (Though, being a slow starter, I owed only $7 in tax that year.) I have copies of all 72 of my returns and none uses a carry-forward," Buffett said.

Trump has so far refused to make his tax returns public in an ongoing war of words between the two business moguls, claiming that he he is currently under audit.

"I have no problem in releasing my tax information while under audit. Neither would Mr Trump - at least he would have no legal problem," he added.