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

Quicker to send and less expensive than a bank transfer, cryptocurrencies are difficult to trace owing also to loopholes in global regulations, he added.

From Barron's

A lawyer promising secret loopholes is probably best avoided.

From MarketWatch

The revelation that prediction markets could dodge state rules and taxes through what he calls a “loophole” prompted him to launch an anti-prediction market lobbying group called Gambling Is Not Investing.

From Barron's

Matt Wrack, its general secretary, said the "loophole" allowing an untrained member of staff to drive "has been known for more than 30 years, has cost lives and must be closed".

From BBC

AI music generation platforms -- such as US based Suno and Udio -- argue their work is covered by the American copyright loophole of "fair use," which does not require rights holders' consent.

From Barron's