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The Dutch rule is a principle in the context of taxation, specifically relating to the taxation of capital gains. It stipulates that a tax is imposed on the increase in value of assets held by an individual or entity, but only when those assets are sold or otherwise disposed of. This approach contrasts with the realization principle, where taxes are applied to capital gains as they accrue. The Dutch rule is often discussed in relation to tax policy and economic behavior, as it can influence investment decisions.

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