That's very sad for you and your people but you have one thing wrong. You can avoid paying taxes with bitcoin, you just need to have the desire to do so. If you are safe and anon with your bitcoins no one can ever tell you what you owe. They might say you earn from x and y but they can never say in bitcoin.
The origin of the taxes is the problem. If you are alive and breathing, they say you are earning money and have to pay taxes. If you have a car, a home, you are told you earn even more money.
They don't care to speculate where you get your money from, whether it's bitcoin, or something else: It's up to you to pay them from wherever your fictional income comes. And that, in a country with a known rate of >25% unemployment.
Bitcoin is an antidote to many things, but not this kind of taxation scheme.
How is that even legal? So they just demand taxes on x amount even if you earned less, What if you earned less and con prove it?
There are generally 2 ways to prove it:
1) Burn capital from prior years declared income
2) Show that you've got a loan or donation during the same period that covers the expected difference
If you go route (1) you must have shown this income in past years (so you've already been taxed - you can't escape it)
If you go route (2), both loans and donations have to be declared. Donations are taxed heavily (up to 40%).
So the taxman will get his way.
