If you don't mind the CRA chasing you down, then go ahead and don't report it law. CRA is nowhere nearly as vicious as the IRS down in the States, but they are still pretty nasty.
I think you can avoid capital gain if you move/live in rental condo for a period, then it becomes your primary residence, ie no cap gain. Devil is in the details, talk to a tax accountant way before you try this move.
You married a good and smart man. CRA is not enforceing its power. In the US even Criminals file tax returns on their income. (True story from my boss).