Section 394 — Income Tax Assessment Act 1936: 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.