Taxes paid in a partnership set up or business which involves more than one person coming together to form an establishment requires that each partner pays its incometax from their earning. Hence, <em>Riley and Layla will each pay personal income tax on portion of their earnings</em>.
Partnership businesses are established and owned by partners who have put resources together.
Usually, at the end of each business period, businessreport such as the annual income report is generated where <em>cost, profit and losses are analysed</em> is generated.
This report forms the basis of profit sharing between partners based on each <em>individual's percentage of the </em><em>partnership</em><em> </em><em>share. </em>
Personal income taxes is then levied on the amount apportioned to each partner.
Therefore, <em>Riley and Layla will each pay personal income tax on the portion of their earning</em>.
