Law360, New York (July 17, 2015, 10:37 AM EDT) -- The California Franchise Tax Board has proposed an amended version of California Code of Regulations (CCR) Title 18, Section 25136-2, which would impose California income tax on certain fees received by asset managers regardless of whether the relevant funds to which an asset manager provides services or the asset manager itself maintain any presence in California. Under the proposed regulation, discussed in detail below, an asset manager based outside of California that receives fees from any hedge fund or private equity fund with California-domiciled shareholders, beneficial owners or investors will be subject to California income tax on its net income in proportion to the fees received from California investors. Because the proposed regulation, when finalized, would be effective retroactively to Jan. 1, 2015, it may impose new California tax filing and liabilities on asset managers based outside of California for the current tax year....