Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1936 - SECT 327

                   For the purposes of this Part, a share in a company is an eligible finance share if all the following conditions are satisfied:

                     (a)  the shareholder is an AFI or an AFI subsidiary;

                     (b)  the share was issued to the shareholder by the company in the ordinary course of business carried on by the shareholder;

                     (c)  the shareholder is not an associate of the company;

                     (d)  having regard to:

                              (i)  the manner in which the amount of dividends in respect of the share are to be calculated; and

                             (ii)  the conditions applicable to the payment of dividends in respect of the share; and

                            (iii)  any other relevant matters;

                            the payment of the dividends in respect of the share may reasonably be regarded as equivalent to the payment of interest on a loan where the interest accrues at intervals not exceeding 12 months and is paid not later than 12 months after it accrues.