THE CUBA REVIEW 27 
FOUR PER CENT COMMERCIAL TAX 
The Cuban Government, in a decree 
dated September 30, published on October 
26, gives the following detailed informa- 
tion regarding the incidence of the 4 per 
cent. commercial tax. The substance of 
the legislation referred to is: 
(1) All business concerns domiciled in 
Cuba will pay 4 per cent. of their profits 
if their capital exceeds $10,000 or if their 
profits are $2,000, and also foreign busi- 
ness concerns if the capital employed or 
profits earmed in Cuba come within those 
limits. 
(2) Net profits are defined as the bal- 
ance resulting after deducting all expenses 
from receipts. 
In expenses may be included municipal 
and provincial taxes, but not amounts 
paid to the State in respect of this tax 
for the preceding year, nor amounts 
placed to reserve funds. The salaries of 
directors, managers, and partners are in- 
cluded in profits, as are also any other 
gain produced by the concern or its par- 
ticipation in other companies, even though 
these may pay taxes to the State (e. g., 
stock exchange operations). 
(3) This tax is leviable on all busi- 
ness concerns, which do not pay other 
specifically decreed taxes, and its collec- 
tion will commence on January 1, 1921, 
general and private firms trading accord- 
ing to article 5 of the decree of July 1 
being liable from January 1, 1921, and 
mercantile associations from July 1, 1920. 
(4) Transference of or cessation from 
business must be notified to the Govern- 
ment within 10 days. 
(5) Balance sheets, supported by state- 
ments of debit and credit balances and a 
detailed statement of all expenses, must 
be presented every six months and also 
annually, and assessments of the amount 
payable will be made 30 days after such 
presentation, appeals from such assess- 
ments being permitted to the Treasury 
and therefore to litigation. 
Failure to produce such balance sheets 
(or other documents required by the Gov- 
ernment) will involve assessment on the 
basis of the previous year, the State re 
serving the right to amend such assess- 
ment at the expense of the defaulter. 
TRADE WITH CANADA 
Figures showing the Canadian import 
and export trade with Cuba for 1919, as 
compared with 1918 and 1913, are ap- 
pended in the following table: 
Imports from Cuba 
1913 1918 1919 
$4,306,817 $2,034,654 $12,565,712 
Exports to Cuba 
1913 1918 1919 
$1,850,468 $4,879,779 $5,642,675 
EXPORTS OF SHOES TO CUBA 
Cuba was the chief importer of shoes 
from the United States during November, 
being credited with 669,108 pairs, valued 
at $2,646,396. Cuba took 277,605 pairs of 
women’s shoes, valued at $578,081; 287,- 
432 pairs of children’s, valued at $1,740,- 
390, and 104,071 pairs of men’s, valued at 
$327,925, from this country. 
NORWEGIAN PAVING BLOCKS FOR 
CUBA 
Consul Frank Bohr reports that a Nor- 
Wwegian schooner arrived at Cienfuegos, 
Cuba, late in December, bringing some 
250,000 granite paving blocks from Fred- 
erickstaad, Norway, which are intended 
for use in Santa Clara. 
NEW CORPORATION 
The Colorados Cane Corporation has 
been organized, with a capitalization of 
$5,000,000, for the production of cane and 
the operation of mills in the Holguin dis- 
trict of the Province of Oriente. The 
Bank of Oriente has also been formed by 
the same promoters, with a capitalization 
of $500,000. 
NEW COAL COMPANY 
The Cuban International Coal Company 
has been organized with a eapital of 
$1,000,000 for the importation and dis- 
tribution of coal. 
