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

“When we look at where we’re going, it’s not about caring, because everyone on this stage cares. It’s not about values. It’s about results,” he said, pointing to his backing of successful ballot measures to close a corporate tax loophole, raise tobacco taxes, and stop oil-industry-backed efforts to roll back environmental law.

From Los Angeles Times

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

The FT has reported that the government may close a tax loophole which UK firms argue gives an unfair advantage to foreign online retailers like Shein.

From BBC

The loan charge was implemented to close a tax loophole and recover backdated taxes but has left many freelance workers facing large bills.

From BBC