loophole

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loop⋅hole

[loop-hohl]

noun, verb, -holed, -hol⋅ing.

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–noun

1.	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.

2.	an opening or aperture.

3.	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.

–verb (used with object)

4.	to furnish with loopholes.

Origin:
1585–95; loop ² + hole

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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loop·hole (lōōp'hōl')

A way of escaping a difficulty, especially an omission or ambiguity in the wording of a contract or law that provides a means of evading compliance.
A small hole or slit in a wall, especially one through which small arms may be fired.

[loop² + hole.]

Word Origin & History

loophole

1464, from M.E. loupe "opening in a wall" (c.1300), perhaps related to M.Du. lupen "to watch, peer;" + hole. Figurative sense of "outlet, means of escape" is from 1663.

Financial Dictionary

Loophole

A technicality that allows a person or business to avoid the scope of a law without directly violating the law.

Investopedia Commentary

Someone who wants to evade certain taxes might find a loophole that allows them to avoid penalties legally.