Bitcoin was created to liberate us from corrupt governments and corporations that serve their own needs. The coinbase transaction in the genesis block, mined by Satoshi Nakamoto contained: "The Times 03/Jan/2009 Chancellor on brink of second bailout for bank". What is your opinion on paying taxes on Bitcoin? The government most likely doesn't know my bitcoin address. Even if they do find it, based on the transactions made from my bank account to exchanges, I could simply say someone stole the private key from me. Many of the posts here asking for help on filing taxes on their Bitcoin make no sense to me. We have a system that allows complete financial freedom and yet people choose to pay their taxes from it and support crooked governments.
It's not that easy to say that someone stole your private key. If an government official comes to your place to enquire about your bitcoin investment, you must understand that the person is holding your financial records and he has analyzed it thoroughly. So you can't just say that your private key has been stolen. It is true that government doesn't always know your bitcoin address, but whenever you have made a transaction to any exchange, it is recorded for future references and work as a strong proof to the government officials.
However, it is always safer to pay tax on your bitcoin earning. Because when you pay tax on something, you can claim that thing as legal. So if you pay tax on your bitcoin holding, you will have upper hand on that government official. I always show my bitcoin earning in my tax information sheet under the "income from other sources" head and pay tax on it. I have been doing it since last two years now.
We don't really need government harassment in our daily life. So it is always better to stay on the safer side.
My point is bitcoin allows us to be free from governments, yet I so many of us take the safe route and support governments via taxes.