If government decision makers see that an activity is disrupting society, they take steps to stop the problem. Therefore it is important that people who earn non-monetary income pay the income tax on the value of their earnings. When you choose someone to be your business partner, you agree that on your T1 personal income tax returns, you will show your combined annual partnership business income at the top of your T2125 business form and at the bottom you subtract your partner’s share of the revenue. You subtract your business expenses such as the cost of your gardening tools and then show your net business income on your personal tax return. BACK - CLICK Government Information - continued