tax loophole

Cultural  

1. A provision in the laws governing taxation that allows people to reduce their taxes. The term has the connotation of an unintentional omission or obscurity in the law that allows the reduction of tax liability to a point below that intended by the framers of the law.

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Example Sentences

Also approved in Tuesday’s meeting was a ballot measure that, if successful in June, would close a tax loophole for illegal cannabis businesses and open them up to the threat of civil collections.

From Los Angeles Times • Feb. 10, 2026

Some have pointed to social-media posts by Bill Ackman, the billionaire hedge-fund manager based in New York, suggesting the closure of a tax loophole the ultrawealthy sometimes use as a better alternative for raising revenue.

From The Wall Street Journal • Jan. 10, 2026

However, Mr Dunkerton said it would be in the UK's interests to get rid of this tax "loophole".

From BBC • Sep. 23, 2024

Of course, this isn’t the only tax loophole the family has exploited.

From Salon • Mar. 27, 2024

For that matter, the usual form of tax relief on agricultural land can be used as a tax loophole by speculators.

From The Nation's River A report on the Potomac from the U.S. Department of the Interior by United States. Dept. of the Interior.