The times. [volume] (Washington [D.C.]) 1897-1901, 1900-08-17
THE CUBAN TAX LAW.
Text of the Order of which bankers
Complain.

which has been the cause OF complaint be-
cause Of alleged inequities, follows:
Military Government of the Island of Cuba
Headquarters Division OF Cuba.
Havana, August :. 1900.
The Military Governor of Cuba, upon the
recommendation of the Secretary OF FL
nance. directs the publication of the fol-
lowing order:
First--From the LIST of July, 1860. order
No. 1e6. of July IL. 1899. Headquarters
Division of Cuba. and all other provisions
in force concerning the form OF State and
municipal taxation of banks and companies
enumerated in sections 5, 6. T. aad of
tariff second of the Industrial tax, are
hereby modified in accordance with the
following articles:
Second-The following shall pay taxes
to the State at the rate of per cent of
their net profits: (a) Banks OF issue and
discount transaeting business either on
real estate or on personal property. (b)
Stock companies, except mining companies.
savings banks, and such Government loan
and pledge companies as may be officially
recognized and included accordingly in the
list. of tax exemptions. (c) Railroad and
shipping companies.
Third-Insurance companies shall pay 4
per cent Of the premiums annually coll
lected from the insured. From said tax
are excepted mutual insurance corpora
tons where no profits are distributed, and
whose operations may consist only in as
sessing the stockholders for the proper
ticnal amount Of damages that any of them
may have suffered. The tax on the COM
missions OF the agents is hereby suppress
ed. The administration. investigation, and
collection pf he for oboll ha in
with the provisions in force.
Fourth-Eoreign banks corporations.
and companies, or their branches, trans
acting business on this island, shall pay
taxes for their respective class in accord
ance with the provisions of the proceed
ing articles.
Fifth-Foreign banks, corporations, and
companies, or their branches, transacting
business on this island will present a dupli-
cate sworn statement to the adminis;ra-
ton of internal revenue and taxes OF
where they are located, stating therein the
date OF the close of the year OF association
the capital OF the company or amount de-
voted to its operations in this island, and
the names of its agents or managers. With
the sworn statement they will also enclose
duplicate copy of their statutes and deeds
OF incorporation The administration CT
internal revenues and taxes will forward
the duplicate to the department OF
finance. Banks. corporations. and com
panies that may be established hereafter
will fulfill the above requirements before
commencing to transact business. Those
already established shall do so likewise
within period of sixty days from the
publication Of this order in the Gazette
of Havana
Sixth-Banks. corporations, and com
panies, with the exception of insurance
cd
in accordance with this order. shall pre-
sent every six months to the office of
internal revenues and taxes of the fiscal
zone wherein they are established. a state
rnent CT their operations. and at the close
of each year of association a general bal
ance of their books; and il they should
be stock companies. the annual report that
their directors may present to their share
holders. Said balance and the report. as
the case may be. will serve as a basis in
the computation and collection of the tax.
Should the company be domiciled in for
eign country, the administration of finance
will deal with its agents or managers in
this island. who shall present the state
ment. balances, ard reports referred to in
the foregoing paragraph. Insurance com
panies shall present the documents called
for in the rules and regulations OF Deem
Der l. 1893
she ending of the six months or of the
year of association the banks. companies,
and corporations or their agents or mana
gers should neglect to present the state
ments. balances. and reports referred to
in Article VI. the internal revenues and
tax Office may make the necessary inves-
tigation, even so far as to examine the
books of said banks. companies, and cor
porations to properly establish and col
lect the amount Of the tax. reporting the
fact TO the Department of Finance The
settlement made in such cases by said
office may be subject to appeal before the
Department of Finance, but If approved
by the latter the amount shall be due and
subject 10 collection without detriment to
any further action which the banks, COM
panies. and corporations may take in the
exercise of their rights
Eighth-Amounts paid to stockholders
from the reserve funds or from funds
which may be otherwise taxed shall not
be construed as net profit for the pur-
pose Of taxation.
Ninth-The net profit on which the tax
is TO be levied shall consist OF the balance
that remains after deducting from the
total income the proven expenses OF oper-
atiDg and maintaining the business of the
banks, companies, and corporations. The
sums destined for the payment o. material
for carrying on the business c Industry
shall be considered as deductible expenses,
so long as they do not exceed per cent
Of the capital invested isTsaid materials;
such companies or corporations as may
have said material insured in other in
surance companies may include amons |
their expenses the amount of the insurance I
premium; or those which insure their own |
risks the amount of the current :ate of /
insurance at the place Of their business. |
The following shall not be considered as
expenses to be deducted: The sums dss- |
tined to the reserve fund. to the acquisi- /
ton of supplies and that imply an in
crease of capital, to the liquidation of
credits, nor the amount of Industrial OF
real estate taxes paid by the companies or |
on their industries and on |
and rural properties that they /
may possess.
Tenth-Banks, corpora lions. and com
Danies exercising solely Industries that are
comprised in The tariff OF the in
iustrial tax shall only pay the munich
Dalities the quotas corresponding to the
kinds of industries that they exercise in
zach municipal district.
Eleventt-Satd banks, companies, and (
corporations will also pay the munieipali-
les where they are located the real estate ]
ak on the city or country properties they
nay possess in the municipal district
Lands occupied by the lines or tracks Of !
general or transversal railroads are the /
)nly ones excepted from the real estate
ak, as also the buildings erected on said /
ands used as stations, switches, sidings. /
platforms, warehouses for loading and I'M
oading freight shops, aEd other annexes
hat are necessary for the working OF the
ines. J. 3. HICKEY.
Assistant Adjutant General.
Earl Ii and Arson BurIinEanc.