Bank of China evaded billions in tax, issued illegal loans, audit finds

China's top state-owned banks, including the Bank of China and the Agricultural Bank of China, have been found to have evaded billions of yuan in taxes and issued illegal loans, according to the nation's National Audit Office. The Bank of China, one of the country's "big four" lenders, allegedly evaded 2.4 billion yuan ($352 million) in taxes between April 2023 and August 2025. The audit report stated the bank enlisted employees to contribute small amounts to package private equity funds as public funds, thereby qualifying for tax exemptions.

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sincerely accepts the audit supervision

Furthermore, the Agricultural Bank of China was accused of illegally issuing 11 billion yuan in loans to farmland projects between December 2021 and August 2025. The report indicated that some of these funds were misappropriated for purchasing wealth management products and repaying existing debt. China Everbright Group, another state-backed financial firm, also faced criticism for management failures, with the report noting a lack of control over subsidiaries and abuse of the Everbright brand by some companies.

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Whose pockets did the stolen tax go into?

The revelations have sparked public outcry on social media, with users expressing disbelief that state-run banks could engage in such practices. Questions arose about where the evaded tax money went, and many called for fines and fund recovery. The incident has also led to broader concerns about potential tax evasion by other financial institutions in the country.

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If one bank has evaded 2.4 billion, then what about others?