Politics Financial
'Maintain agricultural exemption for entrepreneurs'
The agricultural exemption must be maintained. Lubbert van Dellen, commercial director of Accon avm, argues for this. He calls on agricultural entrepreneurs to emphasize to politicians that the scheme is necessary, effective and relevant. Especially during this period.
Van Dellen is thus responding to the Court of Audit's accountability audit that was published yesterday (Wednesday 19 May). The court concludes that the agricultural exemption can be abolished or must be adjusted.
Against the sore leg of Accon avm, who calls on entrepreneurs to 'adjust agreements in a partnership, general partnership or CV in such a way that the agricultural exemption - at least until now - is secured'. Also because the Court of Audit's signal about the agricultural exemption comes "after a report from the Ministry of Economic Affairs in May 2020, in which the adjustment of the Business Transfer Scheme (BOR) was expressly mentioned."
Rising agricultural land price
In the report, the Court of Audit states that the agricultural exemption has been an instrument without a clear purpose for 20 years. "We do think that it has a purpose," says Van Dellen, when asked Boerenbusiness† "That is firstly that an increase in the agricultural land price is not stimulated any more. And secondly that, from our point of view, an increase in the value of agricultural land is not a profit from business operations."
Accon avm considers the exemption to be important primarily to enable the financing of land-related companies. "And not to make the socially desirable extensification of livestock farming - but also the extensification of the farming plan in arable farming - even more impossible."
Van Dellen also sees bottlenecks in ground mobility, "which is not desired right now". And he has concerns about the transfer of businesses in the family sphere in the future. "We believe that the agricultural exemption should not be adjusted at this time, in view of, for example, the call from European Commissioner Timmermans for nature-inclusive agriculture and extensification. "Our concern goes further, for example if the scheme is changed without a transitional tax arrangement," continues Van Dellen. "Then the impact is very large for the sector and especially for companies that have so far postponed revaluation and business transfer."
On the formation table
LNV minister Carola Schouten disagrees with the Court of Audit's conclusion that tax unequal treatment of landowners-lessees and landowners-farmers has arisen as a result of the continuation of the agricultural exemption after 1 January 2001. She acknowledges that the original purpose of the exemption has expired.
In response to the report, she also indicated that an investigation into the agricultural exemption is planned in 2022 and that her successor in office will decide on the design of this investigation. "This puts this research 1-on-1 on the formation table. With a situation that after nitrogen, agriculture is looked at differently and there is a search for corona funds," says Van Dellen. He wants to indicate that the chance is not inconceivable that the agricultural exemption will fail this time.
Van Dellen therefore calls on the sector to "use its own influence on politics to underline that regulation is needed right now to realize extensification and that it has an effect."
Action entrepreneurs for their own company
Van Dellen has discovered that the Tax and Customs Administration has indicated that no revision needs to be made in the event of abolition. "So imagine that the scheme is abolished as of January 1, 2022. The land will then be worth €60.000 per hectare. With a later sale for €70.000 per hectare, not only the €10.000 profit is taxed, but also the difference between the current book value is current (say 30.000 per hectare) and the value of €1 per hectare will be taxed as of January 2022, 60.000. Together that is 10+30, or €40.000 per hectare.
Whether only the €10.000 profit is taxed or the €40.000 together is entirely determined by actions that the agricultural entrepreneur now takes to secure the agricultural exemption for him," emphasizes Van Dellen. He therefore calls on entrepreneurs to take action in this regard. "That can lead to agricultural land, but also the subsurface of buildings, being entered in the books at actual value," adds Van Dellen.
And at the same time 'take into account a change to the BOR scheme as suggested in May 2020' and take steps in the transfer of the company. "After all, these mutual agreements often have to do with future business transfers. Especially if the entrepreneur intends to do this in the coming years. This does not have to mean transferring the entire company, but can also be a first step in the transfer."
Linda van Eekeres
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