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Taxes

Grandfather clause

When a law is modified or a tax treaty is formed or changed, there is a temporary clause that preserves any existing legislation. This clause ensures that the current legislation remains valid until the new modifications or treaty come into effect. This is important to maintain continuity and avoid any confusion or disruption in the application of laws and treaties. It allows for a smooth transition without any interruption in the legal framework. This temporary clause serves as a safeguard to prevent any potential gaps or conflicts in the application of laws and treaties. So, it essentially acts as a bridge between the old and new legislation, providing a buffer period for adjustment.

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