Description

A lower inheritance tax on the transfer of farms to the younger generation, provided the transfer guarantees the continuation of the farm and preserves the jobs for a certain period of time, for example. Inheritance tax only affects family businesses, not legal entities.

Requirements

• A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
• Clear and coherent political strategy and targets for policy-makers and public authorities
• Clear responsibilities in public authorities
• Formalised requirements for the productive use of farm assets
• Functioning tax authorities
• Skilled / specialised personnel to man the respective institutions / provide the respective services
• Transparent tax system

Possible Negative Effects

• Short-term reduction in tax revenues
• Back taxes could be payable if the requirements are not met, leading to loss of the farm