No Big Audit Impact From Country-By-Country Rules, Companies Say

Public country-by-country reporting is important, but it won’t change much with regard to companies’ audit risks and how they approach audits, corporate tax executives said Tuesday.

“I’m not sure it changes the dynamic,” said Jed Larkin, senior vice president for tax and real estate at 3M, on an online panel sponsored by KPMG. Country-by-country reporting is more an investor-relations issue than a tax-controversy issue, he said, and it won’t change 3M’s audit risk profile.

• Any impact that country-by-country reporting has will be “incremental,” said Sonja Schiller, head of global tax controversy at Netflix Inc. It will be ...