Most modern refinery catalysts have a useful life of 1 to 3 years and are disposed of at the end of this period. Is CRA still of the view that the costs incurred on the acquisition of new catalysts qualify as property of Class 26 (depreciable at 5%, declining balance method)? CRA stated:
Our position remains that the cost of catalysts is properly classified as Class 26, deductible on a declining basis at 5% per year. … We suggest you make a submission to the Department of Finance.