Conversion Tax Law: Constitutional Protection of Legitimate Expectations

The Federal Constitutional Court’s Second Senate, First Chamber, dismissed the constitutional complaint without a reasoned opinion, thereby denying the applicant relief and leaving the lower court’s decision in force. The dispute concerned German conversion tax law (Umwandlungssteuerrecht), specifically challenging the application of statutory rules regarding tax treatments in corporate restructuring or conversion scenarios and alleging a violation of the constitutional principle of protection of legitimate expectations (Vertrauensschutz). The decision stands on the procedural basis of Article 23 of the Federal Constitutional Court Act, which allows the chamber to dismiss complaints manifestly lacking success without further reasoning when the arguments do not reveal a credible possibility of success in establishing a fundamental right infringement.