what is a loophole 
a loophole is a technicality that allows a person or business to avoid the scope of a law or restriction without directly violating the law used often in discussions of taxes and their avoidance loopholes provide ways for individuals and companies to remove income or assets from taxable situations into ones with lower taxes or none at all loopholes are most prevalent in complex business deals involving tax issues political issues and legal statutes they can be found within contract details building codes and tax codes among others 