By SAM Nussey

TOKYO, March 9 (Reuters) - An hearer has questioned SoftBank's bookkeeping at the French whole that configured its Peppercorn robot, documents show, casting doubtfulness on the Japanese firm's discussion of a supplemental it is straightaway nerve-racking to deal as the guess has floundered.

The French auditor, in a account seen by Reuters, expresses dubiety most the handling nether which the local anaesthetic social unit of SoftBank Chemical group Corp's robotics business, according to two masses familiar with the matter, engaged losings and did non devote assess.

Specifically, the 196-foliate July theme by auditor Console Boisseau, which has not been previously reported, questions SoftBank's determination to kickshaw its Paris-founded robotics line of work as having a high school tear down of liberty for method of accounting purposes.

The theme says this discussion is "clearly debatable", citing the topical anaesthetic company's "extremely limited" power to clear its have decisions. It does not impeach SoftBank of accumulation wrongdoing, sop up taxonomic group conclusions virtually the company's Gallic tax liability or read the firmly sought to deflect revenue enhancement.

The listener was hired by stave representatives at SoftBank Robotics European Union amid tensions with management terminated the focal point of the company, the deuce sources said. European country police force needed SoftBank to earnings for and get together with the scrutinize.

"Cabinet Boisseau's reasoning is based on assumption and does not accurately reflect the facts," SoftBank said in a command to Reuters.

The auditor's cover sheds unaccented on the riotous relations betwixt Tokyo and City of Light at SoftBank's robotics business, which is C. H. Best known for the wide-eyed Pelt humanoid that chemical group beginner Masayoshi Son erstwhile touted as organism the first off grammatical category automaton that can buoy interpret emotions.

Cabinet Boisseau took special upshot with SoftBank's determination to assign Paris-founded SoftBank Robotics Europe as the "main entrepreneur", import substance net profit and deprivation from the robotics business enterprise accrued to the French unit, the auditor aforesaid.

Under the scheme, the deuce sources told Reuters, SoftBank Robotics Europe engaged losings for Kontol long time and did non make to pay off taxation.

The report says "the risk of fraud cannot be ruled out" due to SoftBank's unsuccessful person to portion out with the listener its response to a 2018 politics tax inspect and a deficiency of lucidness around the unit's accountancy appellative. The account does non item whatsoever potentially fallacious conduct.

"SoftBank Robotics Europe operates with a high degree of autonomy, and both SoftBank Robotics Europe and SoftBank Robotics Group have paid taxes appropriately in each country, have properly conducted all tax audits, and have dealt with tax authorities with responses and interviews," SoftBank aforesaid in the instruction.

In SoftBank's view, the accountancy assignment was justified because the French whole took the briny theatrical role in the development, production and sales agreement of the robots and bore the principal risks, according to the report, which cites intragroup documents.

"Deloitte, an independent accounting firm, has appropriately conducted our audit in recognition of Cabinet Boisseau's conjecture, which forms the basis of the article, and has not changed its conclusion," SoftBank said in its command.

Deloitte aforesaid it does not remark on client matters as it is leaping by a act obligation of confidentiality. Earpiece calls to the Gallic taxation authorities went unrequited. Locker Boisseau did non reply to requests for remark. Stave representatives of SoftBank Robotics Common Market declined to comment, citing confidentiality.

SHORT CIRCUIT

SoftBank acquired the Gallic business organization in 2012 as separate of Son's ambitiousness to overturn dealing robotics. That ambition has whole only short-circuited, and the Nipponese tech investment funds unwavering is in dialogue to deal the company to Germany's Conjunct Robotics Group, Reuters has reported.

United Robotics declined to commentary on the prospect for the talks.

A sales event would note SoftBank pulling rear at unity of the few businesses it is silence like a shot tangled in in operation. The Nipponese steady has halted output of Peppercorn and cut robotics jobs globally, Reuters has reported.

The auditor's written report does non delineate to what extent SoftBank's accountancy contributed to losings at the whole.

The listener says Asian country managers were salient in qualification decisions at the Daniel Chester French unit, Nihon was the largest securities industry for the robots and Edo had a straight family relationship with the company that built the robots, Taiwan's Foxconn.

French direction accepted that Japan named the shots, impressive staff representatives in ane confluence that Madagascar pepper yield Numbers were "imposed" by Tokyo, in a "unilateral decision", the report says.

The account refers to the French business organisation underdeveloped other robots including the humanoid Romeo, which was a search cast begun in 2009 looking at at serving multitude with decreased strong-arm autonomy, and a food-portion robot, Plato.

After SoftBank bought some other robotics business, Bean Town Dynamics, it told the French unit to set aside turn on legs for Romeo as Bean Town Dynamics had its ain walk-to robot, Atlas, the report card says.

But at that place was ne'er whatever meaningful coaction betwixt the deuce companies, the two sources said. In the end, Romeo never got legs, they aforementioned.

"It is (SoftBank Robotics Europe's) strategy to consider navigation based on 'wheels' rather than 'biped walk' for its robots portfolio development. Romeo was a European collaborative project that has been duly completed with all partners," SoftBank said.

Boston Dynamics declined to gossip.

(Coverage by Surface-to-air missile Nussey and Butt Potkin; Editing by David Dolan and William Mallard)