VALUE: 20% of OVERALL ASSESSMENT

DUE DATE: Tuesday, 28 January 2014 (By 4.00pm)
CLW 3000
Taxation Law

Assignment
Trimester 3, 2013

LEARNING OUTCOMES:
The purpose of the assignment is to assess a student’s ability to:
1. identify the facts available;
2. identify the taxation issues arising;
3. research the relevant law;
4. apply the law to the facts identified; and
5. form an opinion.

REQUIRED
Taking the above Learning Outcomes into consideration, your assignment is to
prepare a written opinion addressed to your client, Water-Jet Ferries. It should be
no longer than 1,000 words.

SCHOOL POLICIES
You should refer to the Subject Outline and carefully note the School’s policies in
regard to the following matters:
1. the late submission of assignments;
2. the presentation of written work; and
3. academic integrity

ASSIGNMENT COVER SHEET
An Assignment Cover Sheet must be completed, signed and attached to the hard
copy of your assignment prior to its submission. These forms are available at the

Individual Research Assignment


Kaplan Business School is part of Kaplan Inc., a leading global provider of educational services. Kaplan Business School Pty Ltd ABN
86 098 181 947 is a registered higher education provider CRICOS Provider Codes SA/QLD 02426B, NSW 02913J and VIC 02887F
CLW 3000/2Trimester2013/Assignment


Reception/Front Office. Please check the cover sheet for details relating to
assignment requirements.

ASSIGNMENT

Water-Jet Ferries is a successful ferry operator providing roll-on/roll-off ferry
services to the larger islands off the coast using vessels that are propelled by
water-jets powered by diesel engines. Over the last twelve months the company’s
profitability has been badly affected by rising fuel costs and a fall in patronage. As
a consequence management has decided to examine the possibility of modifying
the existing engines to reduce their fuel consumption. Not only would the
modifications result in reduced fuel costs, the modified engines would produce
increased power permitting the vessels to travel at higher speeds and so enable
more services to be provided. A further benefit would be that the modified engines
would be environmentally friendlier which is important to the island communities
serviced by the company.

Their decision was arrived at after receiving advice from the engine manufacturer
that Water-Jet would be able to treat the modifications as a repair and by doing so
claim a tax deduction for the cost incurred.

Water-Jet has requested your company to provide them with an opinion as to the
correctness of this claim by the engine manufacturer. Your opinion, which should
also include an outline of the alternate tax treatment(s)that may be available, must
be supported by reference to any applicable tax legislation and/or case law.
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