The dangerous parts that differentiate an M1 carbine from an M2 carbine are all removable and interchangeable. Take off the selector lever, which is also the pin that attaches the trigger group to the receiver, and there is no full auto capability. The trigger group has a sear lever that has no function without the long selector lever. The slide on the M2 has a bevel somewhere, but is otherwise identical. The number on the receiver is irrelevant. This is not the US where the BATFE has a 'once a machine gun always a machine gun' rule, nor is an ordinary M1 or M2 necessarily a Converted Auto, except if the full auto parts are present.
If the RCMP are close minded and quote the right CCC and Firearms Act sections, and insist that the firearm cannot be transferred, here is what I suggest. Strip off the parts. Cut a piece out of the receiver side rail with a hacksaw. You probably don't even need to get a transport permit to a gunsmith to do it (and all the opportunities for losing possession or control that this might trip.) The receiver cannot be fired and the parts are just spare loose bits now. There is no possibility to deactivate a stripped receiver according to the deactivation instructions. The chunk out of the sidewall is pretty obvious. Sell the parts to whoever is interested, or build another rifle. No drama.