China's Audit Office: Bank of China Evaded Taxes of 11 Billion Yuan Through "Head-Counting" Scheme

(CNA reporter Liao Wen-chi, Shanghai, June 25) China's National Audit Office has released a report revealing that the Bank of China, one of China's four major state-owned banks, evaded taxes totaling 2.367 billion yuan (approximately 11 billion New Taiwan dollars) by packaging private equity funds as public funds through a "head-counting" scheme.

According to reports from Hong Kong 01 and Takungpao, China's National Audit Office released the "Audit Work Report on the Execution of the Central Budget and Other Fiscal Revenues and Expenditures for the Year 2025" on June 23. In the section on financial risks, the report disclosed tax-related violations by the Bank of China.

The report stated that between April 2023 and August 2025, the Bank of China arranged for two of its subordinate financial institutions to act as channels. Through a "head-counting" method where a large number of the bank's employees contributed 1 to 100 yuan, 11 private equity funds were packaged as public fund products. By exploiting the tax exemption policy for public funds, the bank cumulatively evaded 2.367 billion yuan in taxes.

The Bank of China responded, stating that it sincerely accepts the audit supervision, attaches great importance to the issues pointed out by the audit, deeply analyzes the causes, insists on immediate rectification, refines and clarifies measures, and solidly promotes rectification.

Furthermore, the National Audit Office's report also named the Agricultural Bank of China, stating that from December 2021 to August 2025, its pre-loan review was lax, and it illegally issued loans totaling 11.066 billion yuan to non-high-standard farmland projects. Some of these funds were diverted to purchase wealth management products and repay debts. (Editor: Chiu Kuo-chiang) 1150625

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