A Victoria medicinal marijuana club is being forced to pay $150,000 in backdated taxes on its estimated $2.5 million in annual sales.

Canada Revenue Agency began investigating the Cannabis BuyersB次元官网网址� Club of Canada and owner Ted Smith in early May, after he admitted in a B.C. Supreme Court case that he had not been paying taxes or employee deductions.

B次元官网网址淗onestly, IB次元官网网址檓 just happy IB次元官网网址檓 not going to jail,B次元官网网址� said Smith, who has operated the club for 16 years in Victoria.

B次元官网网址淚n a way, this is kind of a step towards legitimacy for us.B次元官网网址�

Smith won the court case in April, which struck down a section of federal regulations that made the sale of edible marijuana and other products to medicinal users illegal.

As part of his evidence, he admitted the club had been avoiding tax payments.

B次元官网网址淭he police actually took that judgement to the CRA and they started investigating me from there,B次元官网网址� Smith said, adding he will pay the tax bill out of his own pocket and separate himself from future club business.

B次元官网网址淚B次元官网网址檓 going to be left with this mortgage-like debt, but the clubB次元官网网址檚 not going to be affected,B次元官网网址� he said.

Smith is currently in the final stages of appointing a board of directors with the intention of converting the club into a non-profit society.

Two committees on incorporation and finance are already working to ensure the new organization operates completely within the law, Smith added.

B次元官网网址淲eB次元官网网址檒l be a lot more transparent, a lot more accountable. ItB次元官网网址檚 a step weB次元官网网址檝e been looking to do for a long time,B次元官网网址� he said.

B次元官网网址淚 can live with a $150,000 debt. But I havenB次元官网网址檛 done anything criminal here at all, IB次元官网网址檝e just not been in compliance.B次元官网网址�

Smith hopes to use some proceeds from his recently published book, Hempology 101: The History and Uses of Cannibis Sativa, to help pay the massive tax bill.