[Taler] How does the "Withdraw Loophole" enable untaxed payments?

[Rune K. Svendsen]

Dear list,

I was reading Florian Dold's thesis on GNU Taler, and I had trouble
understanding the allegedly problematic aspect of the "Withdraw
Loophole". My reasoning about this being unproblematic is as follows:
since the merchant, who receives payment via the Withdraw Loophole,
will eventually need to deposit the funds with an exchange (in order
to be paid by the exchange), and thus reveal the amount it has
received, it does not enable untaxed payments. The exchange will
always know exactly the amount received by a merchant, regardless of
whether it was received via the Withdraw Loophole or not.

Can someone elaborate on why the above reasoning doesn't hold?

Thank you.


Regards,
Rune K. Svendsen