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A young marijuana plant.

Darryl James/ The Globe and Mail/Darryl James/ The Globe and Mail

The Canada Revenue Agency is trying to smoke out some income tax from marijuana growers who supply B.C.'s Compassion Club.

Medical marijuana may be legal, but the club's suppliers don't grow it legally.

When Canada Revenue demanded a list of its growers for income tax purposes, the club went to court claiming CRA would scare off its suppliers.

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Compassion Club lawyer John Conroy says the two sides have reached an agreement and the club is now trying to convince growers to claim their income.

He says many people don't realize that even if you're involved in illegal activities, declaring the illegal income won't result in criminal charges.

By law, CRA must keep all tax information confidential and an agency spokesman says their only concern is the income - not the source.

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