Paul Hogan, of Crocodile Dundee fame, has been disallowed from leaving Australia over an unpaid multi-million dollar tax bill, according to his lawyers.

The ATO (Australian Taxation Officer) served the US-based actor when he returned to Sydney for his mother's funeral.

The 70-year-old actor is alleged to have to pay AU$37.6m of film royalties in offshore tax havens.

Hogan denis the allegations, claiming he had “paid plenty of tax” in Australia.

The order keeps the actor from leaving Australia until the alleged tax debts are paid of arrangements made for the liability to be discharged.

Lawyer Andrew Robinson said Hogan was "stunned and very disappointed the government could treat him as a flight risk".

"He denies the liability asserted by the ATO and has filed objections which have not been the subject of any response.

"The process of detaining Paul in Australia away from his wife and child has devastated him and he hopes that discussions between us and the ATO will lead to a prompt resolution allowing him to return to his family," Mr Robinson added.

The tax office apparently served Hogan with a tax bill for undeclared income last month after a five-year long wrangle.

A spokesman from the ATO told Reuters, "As he is an individual taxpayer, we can make no comment."

Starting as a popular Australian TV comedian, Hogan hit international stardom as Mick “Crocodile” Dundee in the 1986 film, which went on to become Australia's most successful film ever.

The actor lives in Los Angeles with his wife, Crocodile Dundee co-star Linda Kozlowski.