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American International Group, Inc. (AIG, New York) and Ernst & Young LLP (EY, New York; part of the global EY organization headquartered in London) have announced a global tax compliance and technology operating agreement that involves a combination of managed tax services and the transfer of select AIG employees to EY. Employees of AIG’s global tax compliance and tax technology teams transitioned to EY effective March 31, 2018. The five-year agreement was effective as of February 5, 2018.
The managed services agreement calls for members of AIG’s global tax compliance and tax technology teams to be integrated into EY’s tax technology and direct and indirect tax compliance practices at the U.S. federal, state, local and global levels. This will allow AIG to utilize EY’s managed tax services and technology infrastructure, while focusing the company’s internal tax team on more strategic initiatives, according to an EY statement. The agreement is designed to allow both organizations to more effectively and efficiently navigate changes in the tax landscape.
“As global tax compliance obligations become increasingly complex, we welcome the opportunity to partner with EY,” comments Angela Bekker, Head of Global Tax, AIG. “This collaboration reflects our strategy to focus our team internally on impactful strategic initiatives, while providing us the ability to gain efficiencies and access leading technology solutions for our business.”
The arrangement with AIG is an example of EY’s innovative approach to client service, and its history of offering comprehensive tax services, including outsourcing, co-sourcing and other managed services assignments, according to Kate Barton, EY Americas Vice Chair, Tax Services and EY Global Vice Chair Elect, Tax Services. “It gives AIG direct access to our leading-edge tax platform, as well as our knowledge and experience in tax and technology transformation,” she comments. “We are excited to welcome these outstanding AIG professionals to EY, and look forward to leveraging their expertise in our best-in-class service.”
Expanded Opportunities for Both Organizations
The agreement expands opportunities for both organizations, according to Anthony Caterino, Vice Chair and Regional Managing Partner for the Financial Services Organization, EY. “Our deep, market leading insurance industry knowledge provides greater efficiency and more confident implementation of this new tax operating and compliance model,” he says. “Our shared vision for the future of tax is reflected in this collaboration, which will help AIG improve processes, mitigate risk and limit disruption to their business.”
“Our clients are turning to alternatives such as managed services to manage risk and uncover strategic opportunities while adapting to the constantly changing legislative and regulatory environment,” comments Joe Hogan, Tax and Finance Operate Leader, EY Americas. “Having access to the most advanced technology and data analytics is essential.”