Original sentence: According to the arm's length principle, the price at which the transaction occurs is preferred for tax purposes, as it is a fair reflection of the value of the goods or services.Because of these tax benefits, transfer mispricing is favored by a majority of large enterprises.However when the parties that negotiate a transaction are related, they may set an artificially lower price with the intention to minimise their taxes
Edited sentence: According to the arm's length principle, the price, at which the transaction occurs, is preferred for tax purposes as it is a fair reflection of the value of the goods or services.Since both sides wins in this kind of situation, it is preferred by the majority of large enterprises, although tax collectors are not in favour of it.Whereas when the parties which negotiates with one other for transaction are related, they set on purpose an artificially lower the price with the intention to minimise the tax bills for both parties