I have been thinking of this for long and the reason being that a lot of bitcoin transaction is going online everyday in many countries and i think government can generate IGR from this if possible. I am not a programmer and i have a little knowledge about bitcoin technologies but i just want to know if it is possible.
They cannot tax bitcoin directly the same way they do with your dollars, in my country the government already subtract your due taxes from your paycheck so there is nothing to do, but this is impossible with bitcoin, only when you try to cash out to fiat you will need to give an explanation of where you got that money and pay taxes on it but if you keep holding your bitcoin then you are safe.