KYC Exchange funds to non-KYC wallet

It depends on who your counterpart is.
Getting XMR is easy now. You can use the popular instant exchangers for this, such as FF.io, small amounts. It also depends on how much OP needs to exchange for XMR. For no KYC, but steep fees, exch.cx is best for getting XMR no questions asked. What I find mind boggling is that OP's friend wants to dodge taxes and his friend is worried about SOF.
 
5% fee is a ripoff, indeed. I would do small amounts on FF.io and similar exchanges. Their fee is 0.5%, basically 10 times cheaper.