The compulsory loan seems to a term that contradicts itself.
Since it is a loan, it is assumed that it is requested, right?
And compulsory refers to something mandatory, which is imposed, not optional.
However, here we have a really peculiar case, since it is not a common request , such as that financing from an individual with a bank.
This is because the compulsory loan is, in fact, a tax , paid by taxpayers on a mandatory basis.
“ What do you mean? So, in addition to the taxes I’ve already paid, I can still be forced to pay more? ”
Yes, the blunt truth is that.
But this article will show the collection is very rare and only occurs in exceptional cases .
Curious to learn more?
If you want to have a broad view on the subject, this is an invitation to read on.
What is a compulsory loan?
Compulsory loan is a tax modality through which the Brazilian government can raise funds in exceptional circumstances , all of which are provided for by law. For the collection to take place, public reserves must be insufficient to cover the cost of the emergency to be mitigated.
Therefore, it is an unstable tax, carried under special conditions and to meet specific purposes.
In the next topic, we will clarify what they are.
When can compulsory loan be used?
Would you have an idea of what extraordinary situations characterize the compulsory loan?
In fact, this kind of tribute is unusual , as it is only provided for very unusual occasions.
In the Brazilian case, as we will see below, these situations are even rarer.
It is worth noting that, although it is an exceptional and forced tax, its applicability depends on a series of factors and strict compliance with constitutional requirements .
Otherwise, the compulsory loan could be misused, as happened in our recent history.
Then learn about the three scenarios in which he is authorized and how his resources are allocated in each of them.