ALL OF FRIDAY SRL’S PURCHASES ARE MADE FROM ROMANIAN TAXABLE PERSON...

4. All of Friday SRL’s purchases are made from Romanian taxable persons, registered for VAT purposes and applyingthe standard VAT rate, except for one purchase of 1,700 lei made in December 2012, which was a taxable intra-community acquisition of napkins which were dispatched to Romania from Hungary. All purchases are usedby Friday SRL for making taxable supplies.Required:(a) State the conditions that must be satisfied for a company to be eligible to apply the special scheme ofcorporate tax for very small companies, together with the date for fulfilling these conditions. (3 marks)(b) (i) State the deadline by which Friday SRL must choose the option to apply the special scheme of corporateincome tax for very small companies in 2012 and determine the corporate tax due by Friday SRL foreach quarter of 2012; (4 marks)(ii) State, giving reasons, when Friday SRL should cease to apply the special scheme of corporate incometax for very small companies. (1 mark)(c) State the value added tax (VAT) tax periods that a taxable person may use, together with the conditions forapplying each tax period. (3 marks)(d) Determine the output VAT and the input VAT recoverable by Friday SRL for each quarter of 2012.(4 marks)(15 marks)5 Mrs Saturday is resident in Romania, and has her domicile in Bucharest, district 6. She is a lawyer and has her ownoffice as an independent lawyer, providing legal advice to different clients. Her office is located in Pantelimon, a townin Ilfov County. Mrs Saturday applies the real system in determining the income tax for her self-employed activity.Mrs Saturday’s net income earned from her self-employed activity in 2011 was 24,000 lei. At the beginning of 2012,Mrs Saturday estimated that her net income would remain the same. However, in November 2012 Mrs Saturdaydecided to end her self-employed activity and close her office. The amounts of revenues and expenses actuallyrecorded for Mrs Saturday’s self-employed activity in 2012 were:Note leiRevenuesSales revenue 100,000ExpensesRent (1) 11,000Phone and Internet (2) 2,000Depreciation (3) 9,900Compulsory contribution (4) 8,000Notes: