Hi Magisthan,
I haven't played the game for a while.
Paying taxes is tough - you'll need close to perfect efficiency for doing so.
Hence, most of the time, the best approach is NOT to pay taxes by selling your ship at year end and rebuying it at the start of next year (you'll need a flag in that city to be able to do so). If I remember correctly, the ship will then already be repaired. The difference between the sell-rebuy price is smaller than the repair cost plus the taxes which are not paid any more.
Hope that helps... (and hoping that I remember this correctly...)
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