(1) A * life insurance company that is a * friendly society can deduct the amount of a benefit it provides in the income year and on or after 1 January 2003:
(a) under a * scholarship plan covered by subsection (2) or (3); and
(b) to, or on behalf of, a person nominated in the plan as a beneficiary whose education is to be helped by the benefit;
reduced by so much of the sum of the amounts deducted or deductible by the company under section 320 - 75 for any income year as is reasonably related to the benefit.
(2) This subsection covers a * scholarship plan issued by the * life insurance company after 31 December 2002.
(3) This subsection covers a * scholarship plan if:
(a) the plan was issued by the * life insurance company before 1 January 2003; and
(b) no amount received by the company on or after 1 January 2003 and attributable to the plan is * non - assessable non - exempt income of the company under paragraph 320 - 37(1)(d).
(4) This section has effect despite subsection 320 -
80(3).