Since the law regulating public offers for the acquisition of securities and corporate takeovers came into effect in 2002, it should now be possible for any majority shareholder of a stock corporation or KGaA to exclude minority shareholders if the majority shareholder already holds 95 percent of the company's share capital. This so-called squeeze-out significantly reduces the legal form costs of the company. However, the taxation of potential gains from the squeeze-out poses a problem for private investors. According to Section 23 I Sentence 1 No. 2 of the Income Tax Act (EStG), such income is classified as private sales transactions if the period between acquisition and disposal does not exceed one year. The authors examine whether and how this taxation violates applicable law. The focus is on the fact that an acquisition by law or based on a law does not constitute a private legal transaction in the sense of Section 23 EStG. Due to the short duration of Sections 327 et seq. of the Stock Corporation Act (AktG), the authors believe that a reform of Section 23 I EStG is urgently needed.