[Barry Churcher]

A friend and I were discussing this very topic as he has a toy Thompson with the toy company name on the side. As he is a bonified full auto collector he didn't want to take any chances with the toy so he called registation in New Brunswick. The snitty lady on the phone explained that the toy was illegal and would have to be destroyed. Not really believing this and having questions he contacted the RCMP in Ottawa and here is the response. I will post half now and the other half later.

This information sheet describes how the Firearms Act and Criminal
Code apply to replica firearms.

A replica firearm is a device that is not a real firearm, but that was designed to look exactly or almost exactly like a real firearm.
Replica firearms are prohibited devices in Canada .

Antique firearms, as defined by the Criminal Code and corresponding
regulations, are not prohibited.

Some devices resemble real firearms in many ways, but are made of clear or brightly coloured plastic, or have significant dimensional differences. Many of these devices need to be assessed on a case-by-case basis. As a general rule, however, devices significantly smaller or larger than the real version are not classified as replica firearms.

Airsoft guns are devices that have a low muzzle velocity and muzzle energy, and usually discharge projectiles made out of a substance such as plastic or wax rather than metal. Some airsoft guns, resembling with near precision an existing make and model of a firearm, are replica firearms and therefore prohibited devices. Advice as to whether or not a particular make and model of airsoft/pellet gun would be considered a replica can be obtained by contacting the Canadian Firearms Program (CFP).

Possessing or Acquiring Replica Firearms
Individuals may keep any replicas that they owned on December 1, 1998. A licence is not required to possess a replica firearm, and it does not have to be registered. However, individuals cannot acquire, make or import a replica firearm. If a replica firearm is taken out of Canada , it cannot be brought back in. Businesses may possess, acquire or import replica firearms only if they have a valid Firearms Business Licence that allows them to possess prohibited devices for an approved purpose.