Affidavit Of Gross Sales Template for Canada

An Affidavit of Gross Sales is a sworn legal document that provides formal verification of your business revenue under Canadian law. This document becomes essential when you need to provide legally binding proof of your sales figures to landlords, franchisors, or other business partners who require verified revenue information as part of your contractual obligations.

When do you need this document?

You will need an Affidavit of Gross Sales in several common business situations. Commercial lease agreements often include percentage rent clauses that require tenants to pay additional rent based on gross sales exceeding a certain threshold. Franchise agreements typically mandate regular reporting of gross sales for royalty calculations. Business loan agreements may require periodic sales verification for compliance monitoring. Partnership agreements sometimes include profit-sharing arrangements that depend on verified gross sales figures. Additionally, you may need this document for tax disputes, insurance claims involving business interruption, or due diligence processes during business sales or acquisitions.

Key legal considerations

The affidavit must clearly define the reporting period and specify what constitutes "gross sales" for your particular agreement. This typically includes all revenue from sales of goods and services, but may exclude returns, refunds, taxes collected, and other specified items depending on your contract terms. You must ensure that your calculation methodology is transparent and consistent with the definitions in your underlying agreement. The document requires proper supporting documentation, including sales records, accounting statements, and transaction logs. False statements in an affidavit constitute perjury under Canadian criminal law, making accuracy and honesty absolutely critical. You should also consider confidentiality provisions, as this document may contain sensitive business information.

Legal requirements in Canada

Under the Canada Evidence Act and provincial legislation, your affidavit must be sworn before a qualified Commissioner of Oaths, Notary Public, or other authorized official. The document must include your full legal name, your authority to make the statement (such as business owner or authorized officer), and a clear declaration of the facts being sworn to. Provincial Notaries Acts govern the proper execution and witnessing requirements, which vary slightly by province. Corporate officers making affidavits must have proper authorization under the Canada Business Corporations Act or relevant provincial corporate legislation. The affidavit should reference the specific agreement or legal requirement that necessitates the sworn statement. All financial figures must be prepared in accordance with generally accepted accounting principles as outlined in the CPA Canada Handbook, and you should maintain supporting records that substantiate the sworn figures for potential audit or verification purposes.