Latest news with #AccountingTechnicalRelease14
Business Recorder
4 days ago
- Business
- Business Recorder
CAT dismisses ICAP's plea against CCP order
ISLAMABAD: The Competition Appellate Tribunal (CAT) has dismissed the appeal filed by the Institute of Chartered Accountants of Pakistan (ICAP) against the order of the Competition Commission of Pakistan (CCP), which had imposed a penalty over alleged price-fixing practices. The CCP, in 2008 had initiated suo motu proceedings against ICAP for issuing a revised Accounting Technical Release 14 (ATR-14), approved in its 197th Council meeting held on July 25, 2008. The revised ATR-14 introduced minimum hourly charge-out rates and fixed minimum audit fees for public sector entities. The CCP found this to be in violation of Section 4(1) of the Competition Ordinance, 2007, which prohibits anti-competitive agreements. The Commission declared ATR-14 null and void, directed its withdrawal from ICAP's Members' Handbook, and ordered publication of a withdrawal notice in two newspapers. A penalty of Rs1 million was also imposed on the Institute. ICAP challenged the order before the Tribunal, with senior counsel Dr Farogh Naseem contending that ICAP, as a statutory regulator, had the authority to prescribe minimum fees for audit services, particularly in the public sector. He requested the tribunal to overturn the CCP's decision. The CCP's legal team argued that regardless of its statutory status, ICAP could not fix prices in a competitive market. The Commission maintained that such conduct amounted to collusive price-fixing, which is strictly prohibited under the competition laws. After hearing both sides, the Tribunal upheld CCP's order and dismissed the appeal. In a separate matter, CAT also dismissed the Karachi Stock Exchange's appeal against CCP for alleged abuse of dominant position, terming it infructuous. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
Penalty imposed by CCP: CAT reserves verdict in a case filed by ICAP
ISLAMABAD: The Competition Appellate Tribunal (CAT) has reserved its verdict in a case filed by the Institute of Chartered Accountants of Pakistan (ICAP) against a penalty imposed by the Competition Commission of Pakistan (CCP) over alleged price-fixing. The case dates back to 2008, when CCP initiated suo motu proceedings against ICAP for issuing a revised Accounting Technical Release 14 (ATR-14). Approved at ICAP's 197th Council meeting on July 25, 2008, the revised ATR-14 set minimum hourly charge-out rates and fixed minimum audit fees for public sector entities. CCP found this in violation of Section 4(1) of the Competition Ordinance, 2007, which prohibits anti-competitive agreements. The Commission declared ATR-14 null and void, directed ICAP to withdraw it from the Members' Handbook, and publish a withdrawal notice in two newspapers. A fine of Rs. 1 million was also imposed. ICAP challenged the decision before CAT. Representing ICAP, senior counsel Dr. Farrukh Nasim argued that the institute is a statutory regulator and has the authority to set minimum fees for audit engagements, especially for government institutions. He urged the tribunal to overturn the penalty. CCP's counsel countered that ICAP, though a regulatory body, cannot fix prices in a competitive market. The Commission termed such practices as collusive price-fixing—strictly prohibited under all modern competition laws. The tribunal has reserved its judgment. The outcome is likely to impact how professional bodies operate within competitive sectors going forward. Copyright Business Recorder, 2025
