[BlessedBeGod]

...a 20 percent tax on deposits over 100,000 euros at the Bank of Cyprus would be levied.

And when everyone pulls their money out of the banks to avoid the tax, then what?

[RegulatorCountry]

Capital controls, no withdrawals, banks are still closed.

[circlecity]

"And when everyone pulls their money out of the banks to avoid the tax, then what?"

The tax would be collected before the banks reopen. They wouldn't have a chance to pull their deposits in order to avoid the tax.