Gross income
Gross income is the total income earned by a person or business before deducting expenses or taxes. It is an accounting and finance term rather than a legal one. For a business, it is often used interchangeably with gross revenue, although some contexts use it to mean revenue minus cost of goods sold.
How BC law treats it
There is no specific BC law defining gross income. The most relevant legal point is that contracts such as commercial leases with percentage rent, earn-outs and royalty agreements often depend on how gross income or gross revenue is defined.
What it means for your business
A business should check how gross income is defined in any agreement that ties payments to it.
Risks and common mistakes
A vague definition can lead to disputes about whether items such as refunds, discounts or taxes are included.
Browse the full Fulcrum Law Dictionary for related terms.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
