I am not an accountant, I have only taken one basic course in it. But it seems that (in the US), a huge portion of accounting and an accountants work is related to tax. There are thousands of accounting and law firms just dedicated to helping with taxes. Companies try to find all sorts of loop holes, and innovative ways of reporting less income so as to pay less taxes. Almost all businesses also keep very detailed records to use them during tax preperation.
So in those Mid Eastern countries which have no tax, all this activity is non-existent? Since there is no tax, companies have less of an incentive to lie about their income and find loopholes. They just report what they earn. Is that correct?