According to an article recently published by Tröszter (SWK 14/15/2010, S 523), Austrian tax authorities are planning to deny the utilization of foreign losses regarding group taxation if the foreign group member enjoys tax holidays abroad. The reason for the denial is that tax authorities assume that future profits will not be taxed abroad. The following article shows that this assumption might not hold true in a majority of cases, since most tax holiday models grant benefits only for a limited period of time. Furthermore, it has to be borne in mind that tax holidays are a policy instrument often used by developing countries. Therefore, the measure will constitute a disadvantage especially for developing countries. A more differentiating approach would be needed in order to avoid adverse effects for developing countries and Austrian corporations investing in such countries.