You misunderstood the point I was making, which is that in order to not incriminate yourself (i.e. compliant with laws that require you to report) and not have a risk of being caught, then you'd want a way to declare/report, but still maintain your anonymity (privacy).
I think what you are saying is that tax liability could be determined through a ledger, you would pay taxes anonymously to the government, and when you are filing your taxes, you would place a checkbox in the box saying "I paid the full amount of my taxes this year." Thus you are anonymous but have paid taxes. Then if the government wants to verify, you could demonstrate proof (but in that case losing anonymity).
That is not what I proposed.
I proposed we can use Homomorphic sums to prove which transactions add up to which inputs and outputs that we declare without giving up any of our anonymity. Then we give the government this ZKP (zero knowledge proof) and payment.