American International Group and Ernst & Young will collaborate on managed tax services and technology in a new five-year agreement that also involves a transfer of some employees to EY.
Their collaboration announcement notes that “select AIG employees” were transferred, but it does not mention how many people are affected. The employee transfer to EY was effective on March 31, and the agreement kicked in on Feb. 5.
AIG declined to comment.
AIG/EY term their arrangement as an “innovative global tax compliance and technology operating agreement.” Their deal 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 U.S. federal, state, local and global levels.
By doing so, AIG said it can leverage EY’s managed tax services and technology abilities while focusing its internal tax team “on more strategic initiatives.” Both companies also frame their arrangement as something that will help them better navigate complex tax changes.
“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 [products] for our business,” Angela Bekker, head of global tax for AIG, said in prepared remarks.
Anthony Caterino, EY vice chair and regional managing partner for the financial services organization, explained that the agreement expands opportunities for both companies.
“Our deep, market-leading insurance industry knowledge provides greater efficiency and more confident implementation of this new tax operating and compliance model,” Caterino said in prepared remarks. “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.”
Source: AIG, EY