A loophole is a manner in which the purpose or spirit behind a system of laws or rules can be evaded, while complying with the letter of the laws or rules. In some cases, a loophole can also refer to a situation in which a rule is broken but there is no practical way to detect the infraction or enforce the law.
- Potential loopholes can be considered when designing and writing laws; the law can be written in such a way as to prevent all known or anticipated loopholes.
- Simplicity of laws does not guarantee the absence of loopholes, but it makes it a lot less likely.
- Systematic review of laws after they are passed is important in catching loopholes; it is impossible to catch all loopholes, but laws can be amended as soon as loopholes are discovered. Quick closing of loopholes discourages the exploitation of loopholes in the future for the following reason: when businesses and individuals make business decisions based on loopholes, it often involves the investment of considerable time and energy. When the loophole is closed, this investment is lost.
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