Section 130.1 — Excise Tax Act: Arrangements deemed to be trusts

If an arrangement is deemed to be a trust under paragraph 248(3)(b) or (c) of the Income Tax Act , the following rules apply for the purposes of this Part: the arrangement is deemed to be a trust; property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise; in the case of an arrangement referred to in paragraph 248(3)(b) of that Act, a person that has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in that paragraph is deemed to be beneficially interested in the trust;

and in the case of an arrangement referred to in paragraph 248(3)(c) of that Act, any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor.