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Ring signatures are unwound when the tax authorities require you to provide your password to justify your tax basis.
Use more than 1 wallet? Plausible deniability is such a nice toy. And why password? Give them a viewkey to whatever wallet you want to have exposed. Ideally you can even password protect a wallet with different keys who then unlock whichever viewkey you want to release, like the hiddenos feature of safeguard and truecrypt.
I am not understanding how you think this helps?
If the tax authorities demand my private keys so they can trace on the block chain from a particular tx that I claim to be my tax basis to the transaction where I am claiming a capital gain, then how does your suggestion alleviate that demand?
Since Monero has private keys, I can't refuse their demand if it is the law.
http://www.nestmann.com/could-the-government-force-you-to-tell-your-deepest-darkest-secrets
This is not clear as of yet. As of today, the supreme court has not covered passwords that relate to potentially self-incriminating files nor passwords that themselves are incriminating (aka, my password is "IBuredTheBodyAtGPSCoordinates38.8977N77.0366W") or passwords that unlock crypto-tokens such as BTC or the like.
It may very well be possible that the courts end up going either way on the issue. Neverthless, since it would be difficult to tie a person to an XMR address and then impossible to tie an XMR address to a particular transaction without the txid, it's reasonable to think that it wouldn't be too hard to have two accounts - one that could be provided in the case that a court does force the issue.
At that point, how would they be able to prove that this is the "wrong XMR account"?
