Definition of loophole
1a : a small opening through which small arms may be firedb : a similar opening to admit light and air or to permit observation
2 : a means of escape; especially : an ambiguity or omission in the text through which the intent of a statute, contract, or obligation may be evaded
Examples of loophole in a Sentence
She took advantage of a loophole in the tax law.
His attorney has been hunting for a loophole that would allow him to get out of the deal.
tried to close a loophole in the new legislation
Recent Examples of loophole from the Web
But the freeze has a crucial loophole that allows pay increases for employees promoted into existing job classifications.
According to regulators, the increase is caused by contractors that abuse AOB clauses and exploit legal loopholes.
Taking advantage of a loophole in the rule, the Royals have a translator in coach Pedro Grifol who is not professionally trained to interpret responses verbatim.
According to USA Today, at least one expert said the memo’s language offered a loophole for departments to back out of protective provisions by questioning if the relatively new policy would hinder readiness for combat.
Meanwhile, police and city leaders have been slow to reveal camera use guidelines, have resisted requests for footage and have revealed some significant loopholes in their coverage.
One big loophole remains: Amazon's policies don't apply to other companies selling goods through its website, and many of those transactions remain untaxed.
For about a decade, the tax abatements and legal loopholes that Trump was able to finesse came about, in large part, because of Cohn.
Panther was responding to questions from state Rep. Mat Erpelding, D-Boise, who sponsored a bill this spring that would have closed the purchasing loophole.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'loophole.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Origin and Etymology of loophole
First Known Use: 1591See Words from the same year
Definition of loophole
: to make loopholes in
First Known Use of loophole
Financial Definition of LOOPHOLE
What It Is
A loophole is an exception that allows a system to be circumvented or avoided. It usually refers to legal, taxation, or security strategies that are exploited for personal gain.
How It Works
Loopholes are failures of a system to account for all conditions, variables, or exceptions. To illustrate a legal loophole, consider a local development law that requires even an unoccupied building to pay real estate taxes so long as it receives a certificate of completion. In order to avoid paying taxes, a builder may exploit this loophole and choose not to "complete" the building.
An example of a tax loophole is the tax break for small businesses who invest in "heavy vehicles". The tax break applies if the vehicle is used at least 50% of the time for the business. Business owners may exploit this loophole by upgrading their own vehicles to SUVs, which are considered "heavy" under the tax law, and thereby gain a personal financial advantage.
In most instances, loopholes that lead to excessive abuse are corrected by subsequent regulations and laws.
Why It Matters
While loopholes may save money or allow a purchase that would otherwise not be economical, the use of loopholes is considered questionable. Exploiting loopholes may lead to intensive scrutiny and audits, or even just a feeling of bad faith. For example, a tax payer should be aware when a tax consultant advises of specific tax advantage of whether the advantage is claimed on the basis of an allowable deduction or a loophole.
LOOPHOLE Defined for English Language Learners
Definition of loophole for English Language Learners
: an error in the way a law, rule, or contract is written that makes it possible for some people to legally avoid obeying it
LOOPHOLE Defined for Kids
Definition of loophole for Students
: a way of avoiding something a loophole in the law
Seen and Heard
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