Tax

Property Business Arrangements Involving Hybrid Partnerships and Indemnities (Spotlight 63a)

HMRC has published Spotlight 63a warning landlords about a tax avoidance scheme involving hybrid partnerships and indemnities. The scheme involves transferring properties to a limited liability partnership (LLP) with a corporate member, with the stated aims of bypassing mortgage interest relief restrictions and reducing Income Tax through Corporation Tax rates. HMRC's position is that the arrangement fails because mixed member partnership legislation reallocates excess profits to landlords, section 809AAZA anti-avoidance rules treat transferred income as the landlord's own, and the LLP remains transparent for Capital Gains Tax purposes. SDLT applies to property transfers and profit-share changes. Scheme promoters who fail to disclose under DOTAS face penalties of up to £600 per day, rising to £1 million in cases where that is not a sufficient deterrent.

Free Webinar April 28: Tennessee Sales Tax Exemptions

The Tennessee Department of Revenue announced a free webinar on sales tax exemptions scheduled for April 28, 2026 at 9 a.m. CT. The webinar will cover common exemption categories, documentation requirements, and compliance best practices for businesses in retail, manufacturing, services, and tax administration. Registration is available through the department's website as part of their free public education series.

Oklahoma Proposes Weight-Based MST Tax at $1.72 Per Ounce

Oklahoma HB 3983 proposes converting the state's moist snuff tobacco (MST) tax from 60% of wholesale value to a specific weight-based tax of $1.72 per ounce. The bill is currently pending in the Oklahoma Legislature. Nearly half of U.S. states already use weight-based MST taxation, with rates ranging from $0.02 to $3.54 per ounce.

California Proposal Would Mandate Worldwide Combined Reporting

California lawmakers are considering mandating worldwide combined reporting for corporate income tax purposes, which would eliminate the existing water's edge election. Under this proposal, California would become the only US state requiring mandatory worldwide combined reporting, bringing back a policy abandoned in the 1980s. The proposal would require corporations with foreign affiliates to include worldwide income in their California tax calculations, subject to state tax without credits for foreign taxes paid.

OBBBA Boosts Refunds 10.9%, $23B Increase Total

The Tax Foundation published an analysis noting that the One Big Beautiful Bill Act (OBBBA) has increased average tax refunds by 10.9% ($3,571 average, up approximately $23 billion total) compared to the prior filing season. The legislation expanded the standard deduction and permanently lowered individual and joint filer rates, preventing an automatic tax increase for approximately 62% of filers. President Trump is touring the country to highlight the larger refunds families and individuals are receiving under the new rules.

Hochul Proposes Second Home Tax, NYC $12B Deficit

Tax Foundation publishes an op-ed critiquing Governor Hochul's proposed annual 'pied-à-terre' tax surcharge on second homes in New York City valued at over $5 million. The article notes that Mayor Zohran Mamdani identified a $12 billion two-year deficit facing NYC and initially proposed steep income tax hikes on the wealthy and corporations to address the gap. The author argues the second-home tax proposal would accelerate out-migration, deter investment, and stifle growth in a city already burdened with some of the nation's highest combined tax loads.

Alabama DOR Lists 200+ Municipalities Compliant with 2024 Police Jurisdiction Reporting Under Act 2021-297

The Alabama Department of Revenue published a notice on April 21, 2026 listing 200+ municipalities confirmed by the Examiners of Public Accounts on March 31, 2026 as having submitted timely annual reports of license revenues and taxes collected in their police jurisdictions under Act 2021-297. These compliant municipalities are authorized to continue imposing municipal licenses, taxes, and fees within their police jurisdictions. Non-compliant municipalities are prohibited from collecting these amounts, though the prohibition does not affect taxes within city limits or state/county levies.

Gayon Sampson Appointed Maryland Comptroller Chief of Staff

Comptroller Brooke E. Lierman announced the appointment of Gayon M. Sampson as Chief of Staff for the Office of the Comptroller of Maryland. Sampson will begin the role on June 10, 2026, succeeding Rianna Matthews-Brown, who served as Chief of Staff since the start of Comptroller Lierman's administration and will depart at the end of April. Sampson joins from the City of Frederick, where he served as Chief of Staff to the Mayor and helped secure nearly $100 million in federal, state, and local funding for infrastructure, housing, and community development projects.

Maryland Personal Income Tax Filing Deadline Is April 15, 2026

The Maryland Comptroller's office issued a reminder on April 15, 2026, that the state and federal personal income tax filing deadline falls on that date. Taxpayers who need additional time to file may request an extension but must pay any estimated taxes owed by the deadline to avoid interest and penalties. The agency reports it has processed over 2,447,539 personal income tax returns and issued over 1,576,196 refunds totaling over $2.23 billion so far this tax season. Working Marylanders may qualify for up to $4,000 through the State Earned Income Tax Credit (EITC).

IDOR Earns Bell Seal Workplace Mental Health Certification for Second Year

The Illinois Department of Revenue (IDOR) has been recognized by Mental Health America (MHA) as a recipient of the Bell Seal for Workplace Mental Health for the second consecutive year. This national distinction certifies that IDOR meets standards for supporting employee mental health in the workplace. A link to the full press release is available on the Illinois government news portal.

Indiana Suspends Gasoline Use Tax April 8 Through May 8, 2026

Governor Mike Braun issued Executive Order 26-09 on April 8, 2026, declaring an energy emergency and suspending Indiana's gasoline use tax effective immediately through May 8, 2026, relying on the Energy Emergency Statute at IC 10-14-3-13. The suspension addresses increasingly high gasoline prices and will entail temporary changes for the Department of Revenue and for distributors and retailers of gasoline. Instructions for the temporary changes have been issued through INTIME to licensed distributors, with additional information available on the department's gasoline use tax webpage. The executive order states the continued need for the suspension will be reevaluated during this period.

County Motor Fuel Tax Rates Effective July 2026

The Illinois Department of Revenue has published the annual County Motor Fuel Tax rates for the period July 1, 2026, through June 30, 2027, as required by the County Motor Fuel Tax Law (55 ILCS 5/5-1035.1). The percentage increase for this period is 2.68%, calculated based on the Consumer Price Index for All Urban Consumers. Rates vary by county: DuPage County at 10.0 cents per gallon, McHenry County at 8.7 cents per gallon, Will County at 5.1 cents per gallon, and Lake County at 4.9 cents per gallon. Retailers making retail sales of motor fuel subject to county motor fuel tax should use these rates for returns filed through MyTax Illinois.

IRS Proposes Wagering Loss Deduction Limit to 90%, Raises Reporting Threshold to $2,000

The IRS has published a notice of proposed rulemaking to amend regulations under sections 165, 6041, 6041A, and 3406 of the Internal Revenue Code. The amendments reflect changes enacted by the One, Big, Beautiful Bill Act (Public Law 119-21). Key changes include limiting the wagering loss deduction to 90 percent of wagering losses (down from the prior 100-percent-of-gains limitation) and raising the information reporting threshold from $600 to $2,000 for payments made after December 31, 2025. Comments are due by June 16, 2026.

EA SEE User Fee Reduced From $99 to $66 Per Part

The IRS has issued an interim final rule reducing the user fee for each part of the Enrolled Agent Special Enrollment Examination (EA SEE) from $99 to $66 per part, effective April 20, 2026. This fee reduction follows a 2025 biennial review under OMB Circular A-25, which determined the full cost of IRS oversight is now $66 per part, down from the prior $99 rate established in 2022. The change is primarily attributable to a revised timekeeping methodology and increased exam-taker volume distributing fixed administrative costs.

Enrolled Agent Exam User Fee Reduced from $99 to $66

The Treasury Department and IRS have issued a notice of proposed rulemaking to reduce the user fee for each part of the Special Enrollment Examination for Enrolled Agents (EA SEE) from $99 per part to $66 per part. The proposed amendments would modify 26 CFR Part 300. Comments and requests for a public hearing must be received by May 20, 2026.

UK PAYE Employment and Earnings Statistics, April 2026

HM Revenue and Customs (HMRC) and the Office for National Statistics (ONS) jointly published monthly estimates of UK payroll employees and their pay derived from PAYE Real Time Information data for April 2026. The release provides official statistics on employment and earnings trends with no associated compliance obligations.

HMRC Tax Receipts and National Insurance Contributions for the UK

HMRC announces the release of accredited official statistics on UK tax receipts, National Insurance contributions, and public expenditure. The statistics will be published on 21 April 2027 at 7:00am. This is a routine statistical release providing summary data on HMRC's revenue collection.

IRS Advisory Council Public Meeting Notice

The Internal Revenue Service Advisory Council (IRSAC) has scheduled a public meeting for Wednesday, May 6, 2026, at 11:00 a.m. Eastern. The virtual meeting via Microsoft Teams will cover topics including enhancements to IRS operations, administrative and policy changes to improve taxpayer experience, information reporting issues, and matters concerning tax-exempt and government entities. Members of the public wishing to attend must register by May 4, 2026.

European Tax Burden on Labor Averaged 38.9 Percent in 2025

Tax Foundation published research finding that the average tax burden on labor across the European Union and United Kingdom reached 38.9 percent in 2025, measured as the difference between an employer's total labor costs and an employee's net disposable income. Belgium had the highest burden at 50.8 percent, while Cyprus had the lowest at 26.4 percent. Between 2024 and 2025, 16 European countries increased their tax burden on labor while 9 reduced it, with the average declining by 0.06 percentage points.

IRS Migration Data 2022-2023: Americans Shift to Low-Tax States

The IRS migration data for 2022-2023 reveals a continued domestic population shift toward low-tax states, with Texas (+56,473), Florida (+55,349), and North Carolina (+39,118) posting the largest net gains in income tax filers from interstate migration, while California (-100,397) and New York (-71,987) experienced the steepest losses. States with the highest net adjusted gross income gains included Florida at $20.6 billion and Texas at $5.5 billion, while California lost -$11.9 billion and New York lost -$9.9 billion. The data confirms a negative relationship between top marginal individual income tax rates and net migration gains.

Vermont Proposes 13.3% Top Income Tax Rate, Would Be Highest in US

The Tax Foundation presented testimony to Vermont's House Ways and Means Committee on April 16, 2026, analyzing the state's proposal to add a fifth income tax bracket at 13.3% for single filers earning over $481,825. If enacted, Vermont would tie with California for the highest top income tax rate in the country, but would apply at roughly half the $1 million threshold that triggers top rates in California, New Jersey, New York, and D.C. Taxpayers with incomes above $500,000 generated 30.41% of Vermont's income tax revenue in tax year 2024.

Alabama In-Person Cash Transaction Rounding Under Act 2026-548

Alabama's Act 2026-548, effective April 17, 2026, mandates a five-cent rounding method for in-person cash transactions. The rounding applies to the final digit of the transaction amount or change tendered, following specific rules (1-2 round down to zero, 3-4 round up to five, 6-7 round down to five, 8-9 round up to zero, 5 or 0 unchanged). The rule does not apply to non-cash payments, does not alter sales prices or tax collected, and does not apply to government-entity transactions. Retailers and their staff handling cash must implement this rounding in point-of-sale systems.

Major Disaster Declaration for December 2025 Oregon Floods

Governor Tina Kotek announced that the President has approved a Major Disaster Declaration for the December 15–21, 2025 atmospheric river storms. The declaration unlocks federal Public Assistance funding for nine Oregon counties: Clackamas, Hood River, Lane, Lincoln, Linn, Polk, Tillamook, Union, and Yamhill. A joint preliminary damage assessment documented more than $15.4 million in eligible damages, with Tillamook County experiencing the highest per-capita impact at $154.29 per person. Oregon has also requested Hazard Mitigation Grant Program funding for long-term risk-reduction projects; that request remains under federal review.

New SNAP Toolkit Explains Life Changes to Report

The Oregon Department of Human Services has released a new Supplemental Nutrition Assistance Program (SNAP) toolkit to help benefit recipients understand and report life changes. The toolkit includes easy-to-read flyers, income-tracking cards, and forthcoming videos in English and Spanish. Materials are available on the ODHS/OHA Publications and Form Server and the ONE Eligibility System partner resources page.

ODHS Mobile Vans Offer On-Site Social Services During Marion County Homeless Camp Clearance

The Oregon Department of Human Services (ODHS) mobile vans deployed to a homeless camp clearance at Hawthorne and Mission streets in Salem, Oregon on April 20, 2026. SSP Community Manager Jamie Baldwin and SNAP Navigator Michelle Carmona provided on-site assistance including EBT card issuance, SNAP enrollment, veteran housing referrals, and addiction services coordination. The program enables benefits enrollment directly in the field, eliminating the need for unhoused individuals to travel to government offices.

Municipal and County Cannabis Retailers' Occupation Tax Rate Changes, Effective July 1, 2026

The Illinois Department of Revenue announced that certain taxing jurisdictions have, by ordinance, imposed or changed their Municipal or County Cannabis Retailers' Occupation Tax on gross receipts from sales of adult use cannabis, effective July 1, 2026. These taxes apply in addition to the Illinois Retailers' Occupation Tax of 6.25% and any locally imposed retailers' occupation tax on general merchandise, which also apply to sales of adult use cannabis. Affected jurisdictions and cannabis retailers should review the linked Informational Bulletin FY 2026-21 for specific rate details.

Kane County Motor Fuel Tax Rate Effective July 2026

The Illinois Department of Revenue has published FY 2026-22 announcing a change in the Kane County motor fuel tax rate, effective July 1, 2026 through June 30, 2027. The County Motor Fuel Tax Law (55 ILCS 5/5-1035.1) authorizes certain counties to impose a tax on retail sales of motor fuel used in motor vehicles on Illinois public highways and recreational watercraft on Illinois waters. Purchasers for use or consumption, not resale, are subject to the tax.

Monthly Expenditure Over £25,000 Published, March 2026

The Welsh Revenue Authority has published its monthly expenditure disclosure for March 2026, listing all transactions of £25,000 and over. The publication follows HM Treasury guidance on transparency and includes a downloadable ODS spreadsheet containing the transaction data. A limited number of transactions have been withheld from publication based on exemptions under the Freedom of Information Act 2000.

Rebecca Godfrey Expenses Report, January to March 2026

The Welsh Revenue Authority published the business and hospitality expenses of Chief Executive Rebecca Godfrey covering the period January to March 2026. This document forms part of the WRA's transparency reporting on senior officials' expenses and is published alongside related Chief Executive expense reports and government finance disclosures. The report was published on 15 April 2026 as part of the authority's commitment to government transparency.

Chief Executive Expenses Reports, Welsh Revenue Authority, April 2026

The Welsh Revenue Authority has published Chief Executive expense reports covering the period April 2025 to March 2026 for current Chief Executive Rebecca Godfrey, and historical reports from April 2018 to March 2025 for former Chief Executive Dyfed Alsop. The publications detail business and hospitality expenses as part of government financial transparency requirements. No compliance obligations or regulatory changes are associated with these publications.

IRS Updates FAQs on Section 127 Educational Assistance Programs

The Internal Revenue Service updated Fact Sheet 2026-10, revising FAQs on educational assistance programs under Section 127 of the Internal Revenue Code. The $5,250 annual exclusion from gross income for employer-provided educational assistance remains unchanged for calendar years 2025 and 2026, with employers instructed not to include these benefits in Box 1 wages of Form W-2. The updates incorporate amendments from the One, Big, Beautiful Bill, which introduces cost-of-living adjustments to the exclusion amount for taxable years after 2026, and include a modified sample plan document.

Municipal and County Cannabis Retailers' Occupation Tax Rate Changes Effective July 2026

The Illinois Department of Revenue announces that certain taxing jurisdictions have enacted or changed Municipal and County Cannabis Retailers' Occupation Taxes effective July 1, 2026, per 65 ILCS 5/8-11-23 and 55 ILCS 5/5-1006.8. One municipality—Mount Zion—is imposing a new Municipal Cannabis Retailers' Occupation Tax on gross receipts from adult use cannabis sales. No counties are implementing rate changes for this period. Cannabis dispensaries in affected jurisdictions must adjust cash registers and computer programs by July 1, 2026 to collect the correct combined state and local retailers' occupation tax rates.

Written Determination 202616004 - Section 355 Spin-Off Tax Ruling

The IRS issued a Written Determination responding to a ruling request dated September 10, 2025, submitted on behalf of Distributing and its affiliates and shareholders, requesting rulings on the federal income tax consequences of proposed transactions under sections 355 and/or 368 of the Internal Revenue Code. The determination was issued pursuant to Rev. Proc. 2017-52, Rev. Proc. 2023-26, and Rev. Proc. 2024-24. The IRS stated it expresses no opinion on the overall tax consequences of the transactions or any issue not specifically addressed by the rulings contained in the letter.

Extension of Time for Section 336(e) Election, S Corporation Stock Disposition

The IRS issued Private Letter Ruling PLR-115169-25 granting an extension of time under § 301.9100-3 for an S Corporation stock disposition. The ruling grants 75 days from January 15, 2026 to file the Section 336(e) Agreement and Election Statement, and 150 days to file or amend returns to report the transaction consistently with the election. The extension is conditioned on the parties' aggregate tax liabilities not being lower than they would have been if the election had been timely filed.

Private Foundation Scholarship Advance Approval Under IRC Section 4945(g)(1)

The IRS issued an advance approval determination under IRC Section 4945(g)(1) for a private foundation's scholarship award procedures, finding that expenditures made under these procedures will not constitute taxable expenditures subject to the 15% excise tax on taxable expenditures. The IRS also approved the foundation's separate educational grant procedures under IRC Section 4945(g)(3), confirming that recipients may receive awards for qualified tuition and related expenses without incurring taxable income under IRC Section 117(b). The determination applies specifically to the procedures as described and assumes the foundation will conduct its programs as proposed.

IRS Determines Governmental Unit Exempt From Form 990 Filing

The IRS Exempt Organizations division issued a determination (Release 202616006) dated January 23, 2026, finding that the requesting organization qualifies for classification as a governmental unit or an affiliate of a governmental unit under Revenue Procedure 95-48, thereby exempting it from the requirement to file annual Form 990 information returns. As a condition of this exemption, the organization remains subject to other obligations as a 501(c)(3) tax-exempt entity, and the determination letter will be made publicly available after redaction of identifying details pursuant to IRC Section 6110.

IRC 4945(g)(1) Scholarship Program Advance Approval

The IRS issued a written determination approving a private foundation's scholarship procedures under IRC Section 4945(g)(1). The approval confirms that the foundation's grant-award procedures satisfy the statutory requirements for advance approval, meaning expenditures made under these procedures will not constitute taxable expenditures under IRC Section 4945(d)(3). Recipients of scholarships awarded under these approved procedures will not owe tax on awards used for qualified tuition and related expenses, subject to the limitations in IRC Section 117(b).

IRS Grants 120-Day Extension for Portability Election Under Section 301.9100-3

The IRS issued a written determination on January 14, 2026 granting an estate a 120-day extension of time to make a portability election under Section 301.9100-3. The extension runs from the date of the letter. The estate must file a complete and properly prepared Form 706 along with a copy of this letter with the IRS at Kansas City, MO 64999 within 120 days.

IRS Grants Extension for LLC Entity Classification Elections Under Section 301.9100-3

The IRS has granted two LLCs (X and Y) an extension of time under § 301.9100-3 to file late entity classification elections under § 301.7701-3(c) to be treated as associations taxable as corporations. The taxpayers have 120 days from January 15, 2026, to file Forms 8832 with the appropriate service center, attaching a copy of this letter to each election. The ruling is contingent on the taxpayers filing all required or amended returns consistent with the relief within that 120-day period.

IRS Grants Extension of Time to Make Qualified Opportunity Fund Regulatory Election

The IRS issued a private letter ruling granting a limited liability company (treated as a partnership for federal tax purposes) an extension of time to make a Qualified Opportunity Fund self-certification election under § 1.1400Z2(d)-1(a)(2)(i). The taxpayer failed to timely file Form 8996 with its Year 1 return because its accountant was unaware of the QOF filing requirement and believed the entity was a single-member LLC. The IRS found the taxpayer acted reasonably and in good faith under § 301.9100-3(b) and that granting relief would not prejudice government interests because the limitation period remains open.

Written Determinations Index Week of April 17 2026

The IRS published its weekly Written Determinations Index (Publication 1078) for the week of April 17, 2026, covering letter rulings, technical advice memoranda, and Chief Counsel advice issued under Internal Revenue Code section 6110. The index is organized by Code section with 9-digit reference numbers for each determination. Critically, Section 6110(k)(3) explicitly states that none of these determinations may be used or cited as precedent by any taxpayer.

Proposed Amendments to Information Reporting Thresholds and Wagering Loss Deduction (REG-113229-25)

The IRS proposes amendments to 26 CFR Parts 1 and 31 under sections 165, 6041, 6041A, and 3406 of the Internal Revenue Code to reflect changes enacted in the One, Big, Beautiful Bill Act of July 4, 2025. The proposed rule would increase the information reporting threshold from $600 to $2,000 for payments made after December 31, 2025, and index the threshold to inflation for calendar years after 2026. The proposed rule would also limit the deduction for wagering losses to 90 percent of losses during a taxable year.

Enrolled Agent Special Enrollment Examination User Fee Reduced to $66

The IRS proposes reducing the user fee for each part of the Enrolled Agent Special Enrollment Examination (EA SEE) from $99 to $66 per part. The fee reduction is part of interim final regulations being issued simultaneously in the Federal Register. Public comments are being accepted until May 20, 2026, with a public hearing to be scheduled if requested.

Art Advisory Panel Reestablished for Two Years

The Internal Revenue Service has reestablished the Art Advisory Panel of the Commissioner of Internal Revenue for a two-year period beginning no sooner than seven days following publication of this notice. The Panel assists the IRS in reviewing and evaluating the acceptability of property appraisals submitted by taxpayers in support of fair market value claimed on works of art involved in Federal Income, Estate, or Gift taxes under IRC sections 170, 2031, and 2512. All Panel meetings will be closed to the public to protect the confidentiality of tax return information.

Enrolled Agent Special Enrollment Examination User Fee Reduced to $66

The IRS issued an interim final rule reducing the user fee for the Enrolled Agent Special Enrollment Examination (EA SEE) from $99 to $66 per part, effective April 20, 2026. The reduction follows a 2025 biennial review under OMB Circular A-25, which determined the full cost of overseeing the exam is now $66 per part due to changes in timekeeping methodology. Individuals seeking enrolled agent status must pay this fee in addition to contractor fees of $251 per part.

IRS Notice 2026-24: Farmer Penalty Waiver; Notice 2026-25: Housing Expense Limits

The IRS has published two notices in Internal Revenue Bulletin 2026-17. Notice 2026-24 waives the section 6654 addition to tax for underpayment of estimated income tax by qualifying farmers and fishermen who file their 2025 calendar-year returns and pay any outstanding tax by April 15, 2026. Notice 2026-25 provides adjusted limitations on housing expenses for purposes of the section 911 foreign earned income exclusion for the 2026 tax year, based on geographic differences in housing costs, allowing qualified taxpayers to apply these adjusted limitations retroactively to their 2025 tax year.

Alabama Suspends State Food Tax May-June 2026 Under Act 2026-604

Alabama DOR announces that the state portion of sales and use taxes on food is suspended from May 1, 2026 through June 30, 2026, under Act 2026-604. City and county sales and use tax rates on food are not affected by this act. Retailers must continue reporting all gross sales of qualifying food items in their total gross proceeds on state tax returns, then deduct qualifying food sales from the amount used to calculate state sales tax.

Emergency Preparation Supplies Sales Tax Holiday April 25-27

The Texas Comptroller of Public Accounts announces the state's Emergency Preparation Supplies Sales Tax Holiday will run from 12:01 a.m. on Saturday, April 25, through midnight on Monday, April 27, 2026. The Comptroller estimates shoppers will save approximately $2.4 million in state and local sales taxes during the holiday, which was approved by the Texas Legislature in 2015. Qualifying items include household batteries, fuel containers, flashlights priced under $75; hurricane shutters and emergency ladders under $300; and portable generators under $3,000.

CBO: Federal Tax Progressivity Post-Pandemic, 2022

This Tax Foundation analysis summarizes the Congressional Budget Office's updated 2022 estimates on the distribution of US household income, illustrating how federal transfers and taxes affect households across income levels. The data shows the federal tax system remains progressive, with effective federal tax rates rising from 1.4% for the bottom quintile to 23.2% for the top quintile and 31.5% for the top 1 percent. The top 1% paid 27.3% of all federal taxes in 2022, up from 14.3% in the 1980s. Pandemic-era policies expired in 2022, causing the bottom 60% share of federal taxes paid to normalize to 12.8% from 1.3% in 2021.

EU Windfall Taxes on Oil and Gas: Economic Impact Analysis

Five EU Member States have requested the European Commission consider taxing windfall profits from high energy prices linked to the war in the Middle East, similar to the 2022 'solidarity contribution' imposed by the Council of the European Union. Between 2022 and 2023, 16 of 27 Member States applied the EU-wide windfall profits tax, while 7 adopted equivalent national measures, raising €26.15 billion in total. The analysis argues that windfall taxes are complex, legally contentious, and create uncertainty that discourages investment, drives production and jobs abroad, and may inadvertently penalize oil and gas companies' renewable energy activities.