Sam is a property investor. He purchased a small commercial building in Sydney for $2,000,000. Sam

had to take out a loan from the ANZ Bank to purchase this property and Sam is charged interest on

that loan. In order to rent the property, he met William, who is an experienced real estate agent. Sam

and William agreed that an upfront lump-sum payment of $8,100 as a management fee is to be paid

to William. With reference to the relevant legislation and case law, discuss the issue as to the

deductibility of the management fee to William and the bank interest charges.