International investment and tax system. Comments on transfer prices between related parties as a tax strategy

Tax systems have been organized to guarantee the financial resources of states, but additionally they have become instruments of fiscal policy to promote national Saving and investment. In seeking a proper balance, and considering globalization, tax systems allow economic agents to adapt their performance maximize profit; their strategies include the reduction of the tax burden. Taking into account that purpose conglomerates operating at world-wide level, hove devised a series of strategies, such as transfer pricing,  over international  transactions  between  related entities,  whose application improves their financial results. This practice represents a challenge to the control that tax administrators must exert.