Boston Marine Food Service (BMFS) sells hot lunches and snacks to the crews of ships that dock at the Port of Boston. According to customary business practices, the officers of the visiting ships receive a 5 percent “commission” from all sales, so that BMFS can retain its “exclusive rights” to the seamen’s business. BMFS is concerned that these payments may be considered kickbacks however they have come to you for advice. Are the commissions considered kickbacks and if not, are the commissions deductible to BMFS.