Victoria Construction Ltd Fined £78,776 by Supreme Court for False Accounting and Criminal Property

Supreme Court Orders Payment for Tax Evasion

The Supreme Court of Gibraltar has ordered Victoria Construction Ltd to pay a total of £78,776 after the company admitted to charges of false accounting and possession of criminal property. The ruling, issued on February 10, 2026, stems from the company's failure to accurately declare its corporate tax liabilities for the years 2019 and 2020.

Details of the Financial Misconduct

The court heard that Victoria Construction Ltd had significantly under-reported its income, leading to a substantial evasion of corporate tax. In 2019, the company's corporate tax return falsely declared a loss of £70,663, when in reality, it had made taxable profits amounting to £265,183. Similarly, for 2020, the company reported a taxable income of just £6,649, despite its actual taxable profits being £113,863.

This discrepancy meant the company paid approximately £887 and £1,209 in tax for those years, respectively, when it should have paid £26,518 and £11,386. The total liability to the Income Tax department, including surcharges for late payment, was determined to be £47,266.

Sentencing and Broader Implications

Puisne Judge Liam Yeats presided over the case. In sentencing, the judge ordered Victoria Construction Ltd to pay a fine of £31,510 and granted a confiscation order for £47,266, covering the owed tax. The total sum of £78,776 will be paid from funds previously restrained in the company's bank account.

Defence lawyer Philip Dumas noted that this case is understood to be one of the first corporate tax prosecutions in Gibraltar's recent history. The Royal Gibraltar Police described the outcome as reaffirming their 'ongoing commitment to pursue economic crime and ensuring that anyone seeking to evade legal obligations is held accountable for their actions.' The company, which is no longer trading, cooperated with the prosecution and voluntarily disclosed further instances of underreporting beyond the initial police investigation.