The article analyzes the factors influencing tax evasion: the value of gross domestic product per capita, tax burden, corruption and openness of information on the use of budgetary funds. The correlation model includes the analysis of two groups of indicators. The first group is indicators of the individual level: education, socio-economic status, attitude to religion, gender, etc. The second group is indicators of the global or national level: GDP per capita, tax burden, the level of corruption in the country, the degree of financial transparency of public finances. The results of the study confirmed the hypothesis that law-abiding tax behavior is largely determined by the openness of information about the use of tax revenues by governments. Disclosure of information on the use of budget funds can become a powerful tool for strengthening the understanding of the legitimacy of the state tax policy, as well as act as a preventive measure to overcome existing facts of tax evasion. Increasing the transparency of public finances will make it possible to reproduce a new level of tax culture, to form an internal agreement of citizens with the fiscal policy of the state.

The article examines the most relevant issues of the external and internal factors’ influence on the accounting current development in Iraq. Historically, Iraq’s accounting system has been shaped by cultural traditions, religion, economic development and political trends over a long period, from ancient times to the present. Its origins date back to the Sumerian kingdom and before the overthrow of the S. Hussein regime. At present, not only national priorities but also global accounting trends have changed. Being formed in parallel with the development of the Republic of Iraq, the current accounting system is not oriented towards the requirements of International Financial Reporting Standards. In order to identify the current determinants of the national accounting system development, the actual model features and the conditions for consolidation with international standards have been analysed. The main directions of accounting harmonisation in the Republic of Iraq towards the international standards integration into the national system have been identified. The main steps of the transformation of national standards to international standards have been presented.