E&Y moves tax work offshore
200 tax compliance jobs to be created in Bangalore after successful pilot
Ernst & Young is set to be the first Big Four firm to shift clients’ tax
compliance work offshore.
The Big Four firm said it planned to take on 200 graduates in India over the
next two years to process company tax returns.
Although the firm plans to retain more than 20 per cent of its tax return work
in the UK, the move could spark fears that more professional jobs will move
offshore, reports the
Financial
Times.
Paul Davies, UK head of tax at the firm, said that offshoring would increase the
firm’s capacity while maintaining or improving quality. But he doubted whether
higher value added tax work would also move offshore. ‘It is unthinkable in the
short term because so much is about understanding the client’s business,’ he
said.
The move follows a successful pilot in Bangalore last October.
