loophole

American  

[loop-hohl] / ˈlupˌhoʊl /

noun

1. a means of escape or evasion; a means or opportunity of evading a rule, law, etc..

   There are a number of loopholes in the tax laws whereby corporations can save money.

2. a small or narrow opening, as in a wall, for looking through, for admitting light and air, or, particularly in a fortification, for the discharge of missiles against an enemy outside.

3. an opening or aperture.

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verb (used with object)

loopholed, loopholing

1. to furnish with loopholes.

loophole British  

/ ˈluːpˌhəʊl /

noun

1. an ambiguity, omission, etc, as in a law, by which one can avoid a penalty or responsibility

2. a small gap or hole in a wall, esp one in a fortified wall

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verb

1. (tr) to provide with loopholes

Usage

What is a loophole? A loophole is an absence or something vague in a rule or law that allows a person to avoid punishment, as in I was able to keep an alligator in my apartment thanks to a loophole in the housing rules that said only “no dogs allowed.” Loopholes often result from poor wording or vague language in a rule or law. Generally, we can expect that anything that is not specifically forbidden or illegal must be allowed. However, this expectation sometimes allows people to get around the law by not violating the exact wording of that law.For example, a law may say that no one is allowed to walk on the sidewalk after dark. People take advantage of the loophole in this law by skipping, running, or jogging on the sidewalk when it is dark. Technically, they haven’t done anything forbidden by the law so they could not be punished for it.People who write laws and contracts try to avoid potential loopholes by using very specific language. Parents often have to do the same thing to avoid their children getting around their rules.Example: The companies used a loophole in the tax code to avoid paying taxes by registering themselves as charities.

Etymology

Origin of loophole

First recorded in 1585–95; loop ² + hole

Example Sentences

“I would have been nervous about liquidity, administrative loopholes, legality, making sure that I got paid,” she said.

From The Wall Street Journal

Every manufacturer in F1 uses this loophole to produce performance upgrades in the name of improved reliability.

From BBC

But he added that "there are still significant loopholes and areas that have been unaddressed by sanctioning countries", allowing volumes to remain high.

From Barron's

The proposal, Assembly Bill 1159, would close certain loopholes in the state’s 2014 education privacy law, but experts say it may not be enough to prevent companies from selling students’ data.

From Los Angeles Times

Formula 1 bosses are moving towards a rule change that would close a loophole rivals believe Mercedes have exploited in the sport's new engine rules.

From BBC