During the summer of 2000, Senior Officials in the BC treaty process established a Taxation Working Group to discuss the issue of taxation. This step was taken because taxation issues were recognized as being a potential obstacle to progress at individual negotiation tables. The Taxation Working Group concluded that taxation should be considered within the context of the entire fiscal relationship and recommended to the Principals that the scope of its work be widened accordingly. In September 2000, the Principals adopted this recommendation and established the Fiscal Relations Working Group (FRWG)

Facilitated by the BC Treaty Commission, the FRWG has provided a forum for Canada, British Columbia, and the First Nations Summit to explore interests, discuss fiscal issues and develop options for structuring post-treaty fiscal relationships among Canada, British Columbia and First Nations on a without prejudice basis. It has not been a negotiating forum and was not intended to replace discussions at individual negotiating tables.

The FRWG first met in September 2000. The major tasks of the group included the exploration of fiscal interests, the development and evaluation of fiscal options and recommendations from each Party to its Principals and this joint report for discussion by the Principals.