Republican candidate Sarah Palin has lost her special election for Alaska's only House of Representatives seat to Democratic challenger Mary Peltola, blunting the former vice presidential candidate's hopes of a political comeback.
Ms Peltola will become the first Alaska Native and woman to hold the state's seat in the House and the first Democrat to hold the seat since 1972.
“I don’t think there will be another birthday like today,” said Ms Peltola, who turned 49 on Wednesday.
Her victory is a boost for Democrats, who have fared well in special elections in the months since the US Supreme Court overturned Roe v Wade.
Ms Peltola, a former state politician, characterised herself as a “regular Alaskan” during the campaign.
“I’m not a millionaire,” she said. "I’m not an international celebrity."
Ms Palin as former Alaska governor and vice presidential candidate to the late John McCain in 2008, had widespread name recognition in the state, as well as the backing of former president Donald Trump.
“Though we’re disappointed in this outcome, Alaskans know I’m the last one who’ll ever retreat,” Ms Palin said in a statement.
Questions surrounded Ms Palin's commitment to Alaska in the run-up to the special election, citing her decision to resign as governor part of the way through her term in 2009. The Republican would go on to appear in reality TV programmes and become a conservative political commentator.
Before the special election, Ms Palin said she had “signed up for the long haul”.
Alaska voters in 2020 approved a new election process that replaced party primaries with open primaries.
Under the ranked-voting system, ballots are counted in rounds. A candidate can win outright if they receive more than 50 per cent of the vote in the first round. If that threshold is not met, the candidate with the fewest votes is eliminated. Voting rounds continue until two candidates remain and whoever has the most votes wins.
Ms Palin called the ranked voting system “crazy convoluted, [and] confusing”.
Ms Peltola will serve the remaining four months of the term of Republican US Representative Don Young.
On November 8, she, Ms Palin and Republican Nick Begich III will compete in an election to fill the Alaska seat in Congress for the next two years.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
