Ahh. Going with the lost-in-a-boating-accident route eh? 
Anyway, assuming you didn't declare that you had bitcoin in the first place, or probably unless you bought good amounts on KYC exchanges like Coinbase, I don't think you need to pay taxes.
Anyway, assuming you didn't declare that you had bitcoin in the first place, or probably unless you bought good amounts on KYC exchanges like Coinbase, I don't think you need to pay taxes.
Probably he declares it since he ask this issue. And there is no other way to hide it if he bought to a regulated exchange. I believe its better to prepare the tax rather than explaining how he lost it. This reason might be used tons of times by the tax evading guys out there too. So goodlucm on explanation.
