I do not know where you life, but it seems to be a great place, because i would not pay any taxes there and just let them prove everything. If everybody would do the same, then they would have to much to do to collect all the taxes and most would not pay a cent. Thank god they never had the idea to do it otherwise. Because it would be so much easier to collect taxes for them if you had to pay them and in order to pay less if you had to go to court and prove you point, which makes sens since you should have all the required papers
You still don't get it
If we talk about, for example, a property tax, they will have to provide an evidence showing that you actually own the property that is taxable. And if you really own it, say, an apartment, they just send an inquiry to the Real Estate Registration Chamber and get an official reply and report which will serve as an irresistible proof in the court. There is basically nothing that you can do to avoid this tax. In fact, that part was not meant as an advice but, nevertheless, you'd better not take to court such cases since it will be a losing case for you, and you will be forced to pay the tax anyway as well as penalties and duties. And it is a completely different story when they have to prove that you lead too wealthy a life which seemingly doesn't match your level of income. Say, they see you driving a luxurious sports car (or the guy next door reports on you) while officially you are unemployed and living under the bridge, but how would they find out what you paid for it?
Maybe, you bought it for just 1 dollar from your playmate?
What does Bitcoin as such have to do with all that? Nothing. That was my point. It is not relevant if we talk about fiat or Bitcoin or whatever form of payment. My "I do not see how Bitcoin can play here a role in anyway." was a reply to a comment which you conveniently cut out.
I cropped that part to avoid overquoting, no ill intent implied on your part
I think bitcoin will not kill income tax because transactions is happening online , And the government will surely make a move in order to prevent the killing of income tax. Maybe it is depending on the country.
Sure, there's various tax that can be charged to you while doing some sort of transaction such as buying goods online but if all people around the world are using bitcoin then there's a chance for government to have their tax decreased due to intransparency of people addressing their income and the sources of it, people might lying to government while government have no evidence.
It is not the job of the government to prove how much income you have made and therefore how much taxes you have to pay. They can just make up a number and then it is your job to prove that you have had a lower income or else pay the taxes they want.
I do not see how Bitcoin can play here a role in anywayAs you can see, your point hinges on the assumption that the government (or rather the tax agency) will impose an arbitrary amount of income tax on you, which is pretty much your wild guesses. Obviously, Bitcoin has nothing to do with them. But that is not what I contested