Yes, because the corporation is already paying 35% tax on the profits that the dividend was paid out of, while interest payments are deducted from taxable (corporate) income.
Yes, through an unrelated tax dodge that wouldn't make the combined dividend + profit tax any more sensible. They're still paying 35% on any profit that hasn't been expensed away somehow, and the dubious ways to expense corporate income are a separate issue from whether this "low" dividend tax is a loophole.
Nothing is avoiding a tax.