Income Tax Assessment Act 1936

PART X - ATTRIBUTION OF INCOME IN RESPECT OF CONTROLLED FOREIGN COMPANIES  

Division 7 - Calculation of attributable income of CFC  

Subdivision B - General modifications of Australian tax law  

SECTION 394  

394   NOTIONAL ALLOWABLE DEDUCTION FOR ELIGIBLE FINANCE SHARE DIVIDENDS, WIDELY DISTRIBUTED FINANCE SHARE DIVIDENDS AND TRANSITIONAL FINANCE SHARE DIVIDENDS  

Where:

(a) the eligible CFC pays an eligible finance share dividend, a widely distributed finance share dividend or a transitional finance share dividend during or after the eligible period; and

(b) if, on the assumption that the dividend were instead a payment of the interest, referred to in paragraph 327(d) or 327A(3)(b) or subsection 327B(2) , as the case requires, to which it may reasonably be regarded as equivalent, an amount (in this section called the ``interest equivalent'' ) of that interest accruing during the eligible period would be a notional allowable deduction for the eligible period;

then the interest equivalent is a notional allowable deduction for the eligible period.