FINANCE

China Auditor Accuses Bank of China of $348 Million Tax Evasion

Published: Jun. 25, 2026 12:48 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

China’s state auditor has accused Bank of China Ltd. (BOC) (601988.SH) of evading 2.37 billion yuan ($348 million) in taxes, a rare public rebuke that signals tightening scrutiny over a widely exploited industry loophole.

In a report released Tuesday, the National Audit Office revealed that between April 2023 and August 2025, BOC used affiliates to repackage 11 private funds into tax-exempt mutual funds. The lender is one of China’s “Big Four” state-owned commercial banks.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Save an extra $50. Introductory offer for new readers. Subscribe now.

Share this article

Open WeChat and scan the QR code

Explore the story in 30 seconds

Bank of China evaded 2.37 billion yuan ($348 million) in taxes by repackaging 11 private funds as tax-exempt mutual funds.
Employees invested 1–100 yuan each to meet the 200-investor threshold required for mutual funds.
The auditor’s public rebuke reclassifies this common industry practice as tax evasion, likely forcing compliance changes.

AI generated, for reference only

Bank of China Ltd.: Bank of China Ltd. (BOC) was accused by China's state auditor of evading 2.37 billion yuan in taxes from April 2023 to August 2025. BOC used affiliates to repackage private funds as tax-exempt mutual funds and had employees invest nominal sums to meet regulatory thresholds. This rare rebuke signals tighter scrutiny of industry practices.

AI generated, for reference only