KPMG to provide HP tax services in global co-sourcing deal
Big Four firm KPMG announced it will provide tax services to HP Inc. in 60 countries as part of a co-sourcing arrangement that will also see HP finance team members from 20 countries join tax teams across KPMG's global network of member firms.
Under the arrangement, made at the beginning of the year, the KPMG team will provide a range of global tax services to HP, including international and U.S. direct and indirect tax compliance services, assistance with global tax reporting and transfer pricing support. The deal represents a trend toward co-sourcing arrangements that has become especially of interest amid the coronavirus pandemic.
“HP is the latest in a host of industry-leading companies that KPMG is working with to reimagine their tax departments and harness the power of technology to help reduce costs, improve quality, manage risk, and make better strategic decisions,” said Greg Engel, vice chair of tax at KPMG, in a statement.
KPMG will also utilize its Ignition network, a collection of teams focused on innovation and intelligence capabilities, to automate compliance processes and create data and analytics reporting for HP.
“HP has enjoyed a long and successful relationship with KPMG,” said Brian Lynn, global head of tax at HP, in a statement. “KPMG’s deep understanding of today’s global tax landscape, combined with the firm’s digital capabilities and innovative solutions, will enable us to continue to meet the needs of our business and the regulatory requirements we adhere to in markets around the world.”
“KPMG has designed a strong managed services solution for tax and finance that allows us to leverage both a global tax compliance platform and their investment in technology to position us for the future,” said Claire Bramley, HP’s chief accounting officer, in a statement.
The seven-year, multi-million-dollar engagement makes the deal one of the largest co-sourcing arrangements for a Fortune 500 company.
“HP is a company that embraces innovation, and we at KPMG share in their commitment to pushing forward with technological advancement,” said Sean Bloodwell, global tax compliance management services leader and partner at KPMG, in a statement. “The suite of tax compliance service options we offer — whether co-sourcing, outsourcing, or another approach — reflects our commitment to meeting and anticipating our clients’ current and future needs.”