What does loopholes mean?
noun
A loophole is a part of a law or a situation that is not clearly covered by a rule or regulation, and can be used to gain an unfair advantage. Loopholes can be used to avoid paying taxes, to exploit a weakness in a system, or to achieve a goal in a way that is not intended by the rules.
Example
"The company used a loophole in the tax code to avoid paying millions of dollars in taxes."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.