THE COMPULSORY CONTRIBUTION IS TO THE ROMANIAN BAR ASSOCIATION WHIC...

4. The compulsory contribution is to the Romanian Bar Association which authorises Mrs Saturday’s activity as alawyer.Apart from her self-employed activity, in January 2012 Mrs Saturday bought shares in One SRL, a company residentin Romania, and in Two Limited, a company resident in Malta. Both companies distributed and paid dividends to Mrs Saturday in March 2012. The gross value of the dividend distributed by One SRL was 5,000 lei, and by TwoLimited was 8,000 lei.Required:(a) State, giving reasons, which is the Romanian competent tax authority for Mrs Saturday’s self-employedactivity as a lawyer. (1 mark)(b) Determine the prepayments of income tax for Mrs Saturday’s self-employed activity as a lawyer in 2012, andstate how the prepayments will be paid to the state budget and the deadline(s) for paying them. (2 marks)(c) Determine the final tax due by Mrs Saturday for her self-employed activity as a lawyer in 2012. (5 marks)(d) State, giving reasons, if the owner of the office where Mrs Saturday has her self-employed activity is involvedin tax evasion or in tax avoidance. (1 mark)(e) State the conditions that must be satisfied for Mrs Saturday to claim double tax relief on the dividendreceived from Two Limited. (2 marks)(f) Assuming that Mrs Saturday is entitled to claim double tax relief, using the tax credit method, determine thetax due by her in Romania for the dividends received in March 2012, state who should declare the tax to