Taxation in agriculture: an evaluation of the Italian land cadastre as a tool for identifying incomes in the agricultural sector

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Abstract
Recent tax reforms contributed to developing a seemingly tax-free agricultural sector in Italy. The purpose of this article is to investigate inconsistencies of the cadastral system and analyse whether it contributes to distancing taxation in agriculture from general principles of fairness and economic efficiency. Data from official sources are analysed using a composite research design with four methodological steps, aimed to: i) investigate differences between cadastral holders and farms; ii) highlight impacts of structural changes in agriculture; iii) contrast determination procedures for cadastral and capital incomes; and iv) evaluate farmland income as a measure of income and land value. Findings reveal several limitations of the Italian cadastral system as an instrument for measuring land and business income, highlighting a mismatch between property and business income taxation, which makes the distinction between farmland and agrarian income anachronistic.

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