Austria, like other jurisdictions, imposes exit taxes when assets are transferred out of its jurisdiction. In the case of relocation in another EU member state, the taxpayer can claim a tax deferral until the assets have been sold or the taxpayer moves outside the EU later on. In a recent decision the Independent Finance Board (UFS) has come to the conclusion that tax loss carry-forwards from previous years have to be offset against exit taxes. As a result, there is no need for a tax deferral. Thomas Bieber and Martin Lehner analyze this decision and the Austrian exit tax regime from an EU law perspective. The forced utilization of tax loss carry-forwards represents a disadvantage for the taxpayer and can probably be seen as a restriction on the freedom of establishment.