Liquid (Shopify) scope questions - loops

Question

I'm trying to set two variables outside of a few nested loops (for loops) and then check or reassign the variables inside the for. Basically, I'm trying to check for current_tags and display links to any tags under those tags (in the hierarchy I've got). Shopify seems to only support one level of hierarchy (collections and their associated products), but I'm trying to use these tags to make it look like I've got multiple levels of ways of classifying products. So shirt, then red shirt/brown shirt, then red silk shirt/brown silk shirt, as a shitty example.
Here's some code:
{% assign showtag = false %}
{% for link in linklists[settings.main_linklist].links %}
{% if linklists[link.handle] == empty %}
{% else %}
{% for link in linklists[link.handle].links %}
{% if linklists[link.handle] == empty %}
{% else %}
{% for link in linklists[link.handle].links %}
{% if linklists[link.handle] == empty %}
{% else %}
{% capture temp_tag %}{{current_tags.first | replace: '-', ' '}}{% endcapture %}
link {{link.title}}<br>
temp {{temp_tag}}<br>
{% if showtag == true %}
<li>{{ tag | highlight_active_tag | link_to_tag: tag }}</li>
{% endif %}
{% if link.title == temp_tag}
{% assign showtag = true %}
{% endif %}
{% endif %}
{% for link in linklists[link.handle].links %}
{% capture temp_tag %}{{current_tags.first | replace: '-', ' '}}{% endcapture %}
{% if linklists[link.handle] == empty %}
{% if showtag == true %}
<li>{{ tag | highlight_active_tag | link_to_tag: tag }}</li>
{% endif %}
{% if link.title == temp_tag %}
{% assign showtag = true %}
{% endif %}
{% else %}
{% if showtag == true %}
<li>{{ tag | highlight_active_tag | link_to_tag: tag }}</li>
{% endif %}
{% if link.title == temp_tag %}
{% assign showtag = true %}
{% endif %}
{% endif %}
{% endfor %}
{% endfor %}
{% endif %}
{% endfor %}
{% endif %}
{% endfor %}
The above is a little messy but is properly indented on the website. Anyway, it seems like the variable showtag loses scope and cannot be found in the for loops - any solutions?