loophole
n. countablen. a small mistake or missing detail in a law or rule that lets someone avoid following it. People often use these to save money or get out of trouble legally.
n. an ambiguity or inadequacy in the wording of a law or set of rules which can be exploited to evade its intended purpose. Often used in legal, financial, or regulatory contexts.
He found a loophole in the tax law to save money.
The company's lawyers identified a legal loophole that allowed them to bypass the new environmental regulations.
While the legislation was intended to close existing gaps, clever accountants quickly discovered a fresh loophole that permitted the offshore transfer of assets without triggering the new tax.
From Middle English loupe (“opening in a wall”) + hole, from a Germanic source. By surface analysis, loop + hole. Compare Medieval Latin loupa, lobia and Middle Dutch lupen (“to watch”).
Commonly paired with the verbs 'find', 'exploit', or 'close'.