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The word "loophole" is correct and usable in written English.
You can use it to refer to an ambiguity or inadequacy in the law, or a means of evading a law or restriction. For example: "The tax law contains a loophole that allows wealthy corporations to avoid paying taxes."
Dictionary
loophole
verb
To prepare a building for defense by preparing slits or holes through which to fire on attackers
Exact(60)
Our membership of the EU enables companies to avoid paying some UK taxes with impunity and we will close this loophole.
Japan has used a loophole in a 1986 global moratorium that allows lethal research on the mammals, but has made no secret of the fact that their meat ends up in restaurants and fish markets.
Tokyo has used a legal loophole in the 1986 ban on commercial whaling that allowed it to continue slaughtering the mammals, ostensibly so it could gather scientific data.
It's a nice thought, and I hope the civil service lives up to the dream, but my DfE experience is that if there's a transparency loophole, they'll use it.
We're going to try to close the backdoor search loophole – this is part of the Fisa Act and is going to be increasingly important, because Americans are going to have their emails swept up increasingly as global communications systems begin to merge".
Speaking more widely about the loophole, which the DWP intends to close, the spokesman said that it believed fewer than 5,000 people would be found exempt: "We are looking at this issue carefully and working with local authorities, and we will take any action in due course.
We've discovered there was a loophole that allowed migrants who no longer have a right to work here….
The European Union is investigating claims that McDonald's avoided more than €1bn ($1.1bn) in tax by exploiting a controversial royalties loophole through Luxembourg.
Australia took Japan to the international court of justice (ICJ) in The Hague in 2010, accusing Tokyo of exploiting a loophole by hunting whales as scientific research to get around a 1986 ban on commercial whaling.
If any change to a $30bn-a-year 30bn-a-year 30bn-a-yearivers more taxn 40% of its benefits to the top 10% of householoopholestitutes an unconscionable "sledgehammer" to retirement savings – as the government says – it's hard to see whichthe Coalition wouldeliversraise tax revenue.
No 10 said it was also closing a loophole whereby someone that has worked in the UK and paid national insurance could continue to claim benefits even if they overstayed their visa.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com