AIG’s tax compliance and tax technology teams transition to EY

American International Group, Inc. (NYSE: AIG) and Ernst & Young LLP (EY) have announced a new, innovative global tax compliance and technology operating agreement that involves a combination of managed tax services and the transfer of select AIG employees to EY.

In this arrangement, members of AIG’s global tax compliance and tax technology teams integrated into EY’s tax technology and direct and indirect tax compliance practices at the U.S. federal, state, local and global levels — allowing AIG to leverage EY’s managed tax services and technology backbone, while focusing the company’s internal tax team on more strategic initiatives. The collaborative managed services agreement allows 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,” said Angela Bekker, Head of Global Tax for 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.” 

Kate Barton, EY Americas Vice Chair, Tax Services and EY Global Vice Chair Elect, Tax Services, said: “The arrangement with AIG is an example of our innovative approach to client service, and is another example of EY’s well-established history of offering comprehensive tax services, including outsourcing, co-sourcing and other managed services assignments. It gives AIG direct access to our leading-edge tax platform, as well as our knowledge and experience in tax and technology transformation. We are excited to welcome these outstanding AIG professionals to EY, and look forward to leveraging their expertise in our best-in-class service.”

Anthony Caterino, EY Vice Chair and Regional Managing Partner for the Financial Services Organization, added: “This agreement expands opportunities for both organizations. Our deep, market leading insurance industry knowledge provides greater efficiency and more confident implementation of this new tax operating and compliance model. 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.”

Joe Hogan, EY Americas Tax and Finance Operate Leader, the EY organization’s managed tax services offering, said: “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. Having access to the most advanced technology and data analytics is essential.” 

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.