It is unusual for a company to be the originator of a work for
which copyright royalties are payable. This is because people write
books and songs etc. However, some works are written under the
terms of "work for hire" contracts. That is, where a company
employs someone, pays them wages and directs them to produce a
particular piece of work.
It is possible for the originator of the work to assign their rights in a work to some other person. Authors may decide to assign their rights for a number of reasons. These include
Because of this you need to consider checking to make sure that the claimant is the beneficial owner of the income. For example you may need to ask for confirmation that
However, there are a few Double Taxation Agreements (DTAs) where
there is a "subject to tax" condition (see
INTM332200) for royalties. You do not
need to make beneficial ownership checks on claims made under these
DTAs. For example a claim from a resident of Germany who is not the
originator of the work may be allowed without further enquiry
provided that the claimant is subject to German tax on the income
and the claim is certified accordingly.
If you receive a claim from a non-resident and you discover that the royalties claim relates to work of a UK resident you should refer the case to Technical Advice Group.