Deductibility of arrears interest and taxability of refund interest for capital companies

The Federal Constitutional Court's Second Senate, First Chamber, dismissed the constitutional complaints, thereby upholding the lower courts' decisions and leaving the respondents' (the state tax authorities') positions intact. The disputes concerned corporate tax matters, specifically the deductibility of interest paid on tax arrears and the taxability of interest received on tax refunds for capital companies. The Court found no violation of constitutional rights, implicitly confirming that the lower courts' application of the German Income Tax Act (EStG) and Corporate Income Tax Act (KStG) regarding these specific interest components was constitutionally valid.