Under EU law, domestic law on the prevention of tax avoidance is only effective if it refers to actual low taxation abroad. In this case, anti-avoidance legislation is appropriate for ensuring the attainment of the objectives that it pursues: combatting the escape from the tax normally due on profits. Consequently, there is a breach of EU law if national law simply presumes the existence of low taxation abroad, irrespective of the facts. This may be demonstrated by the Austrian CFC rules and foreign tax refund systems.