THE CUBA REVIEW 16 



Article IV. — Paragraph (5). The exact amount on which this tax is based is not 

 clear or definite, as many documents to which this tax is applied do not specifically 

 state total amount involved in same [Refers to stamp on rental contracts]. 



Article IV. — Paragraphs (7), (8) and (9): 



1st. Paragraphs (7), (8) and (9) can be construed to require the placing of stamps 

 on orders to deliver merchandise, commodities or goods, which orders should be exempt 

 from stamps. Stamps should be required on orders, only if same embrace the trans- 

 ference, exchange of, or payment of money. 



2nd. Objection is made to paragraph (8) in that no stamps are required on checks 

 or similar documents drawn and accepted and paid in the same locality. 



3rd. Objection is made to Paragraph (8) to the placing of any stamps or other 

 taxation on protests or notices thereof in connection with the documents mentioned 

 in Paragraph (8) or as may be required in the failure of payment of a Note, Draft, 

 Check, Bill of Exchange, Letter of Credit, or any other similar document covering 

 the specific or promised payment of money, when said document becomes due. Failure 

 to pay said documents when due is a breach of contract and the injured party should 

 not be penalized in carrying out its legal right. 



4th. The last paragraph of Paragraph (8) should specifically state that the agree- 

 ment of endorsement must be in writing. 



Sth. A more equitable tax than that of Paragraphs (7), (8) and (9) would be a 

 tax requiring that a stamp of 2 cents' valuation be placed on the face of every check, 

 note, bill of exchange of money, or letter of credit of money, or similar documents, 

 representing the transference of money, be they foreign or of the domain of Cuba and 

 apphcable to the papers, whether same be cashed in the locality drawn or issued, or 

 in other localities, of the domain of Cuba, or in foreign countries, and that said stamp 

 shall be placed thereon at the expense of the party signing said papers at the time 

 of issuance and that said papers are not to be cashed or paid without said stamp thereon. 



Article IV. A more equitable and simpler form of taxation than that of paragraphs 

 (4), (31) and (33) now involving three separate and distinct stamp requirements would 

 be the combining of the stamp requirements of these paragraphs into one stamp, the 

 face value of which shall not exceed eighty (80) cents, and placed on the Document 

 of Entry at Custom House before its acceptance by Custom House, and which shall 

 represent a stamp on the document and not on the valuations in said document. This 

 greatly facilitates and simplifies the stamping of these documents, is more easily collected, 

 more easily audited and checked by the government and is productive of equal or more 

 revenue to the government. 



Article IV. Paragraph (32) is limited and if adopted should be made applicable 

 to bills of lading or equivalent documents issued in Cuba for transference of a commodity 

 from one place in the domain of Cuba to another, and from Cuba to a point outside 

 of same, and should be made to embrace all shipments, be they merchandise or other 

 commodities that are transferred by public railroads or public water carriers, including 

 those carried by express or similar companies operating thereon, and that the rate of 

 taxation be reduced from 20 cents to 10 cents for each document and shall be placed 

 thereon by the shipper for the account of the consignee. 



The foregoing change places taxation on certain shipments that may be construed 

 exempt from this taxation as now written and permits the reduction of the individual 

 documents stamp without material, if any, reduction in revenue to the government. 



Article IV. Paragraph (3) as written is objectionable and should be amplified 

 to show distinctly that this stamp is required only on receipts for the payment of money. 



CHAPTER IV 



entitled "Tax on Gross Sales" should contain a clause to the effect that the Seller shall 



collect from the Purchaser the amount of the Sales Tax applicable to each and every sale. 

 Such provision would greatly reduce the evasions of this tax. 



