Just move your bitcoins to a CEX that is regulated & legal in your country and convert them into fiat from there. CEXs that are affiliated with the government will never have problems with taxation, because every transaction you make is counted in tax, that's what happens in my country.
The right solution. Instead of having to use strategies a and b, we just have to be busy and spend money over and over again, where the final goal is how BTC can be converted into fiat and entered into our personal accounts without many questions from any party.