Bond washing transactions: interest treated as owner income when paid to another, with a rebuttable exception on proof. Bond washing transactions cause interest payable to a person other than the owner to be deemed the owner's income where sale and reacquisition (including similar securities) results in interest being receivable by another; liability is capped at what would have been due had the original securities been bought back. The owner or beneficial holder may avoid deeming by proving to the assessing officer that no tax avoidance occurred, or that any avoidance was exceptional and not systematic and that no similar avoidance occurred in the three preceding years.