Deaths by moonshine aren't that uncommon when the ingredients used have been less than ideal. A fella in NB killed himself and some others by using too much wormwood in his homemade absinthe. While that's uncommon, the risks are there. As well, stills can blow up and are considered dangerous and a fire hazard. And when you do your own, it's not always easy to tell without special equipment what the alcohol concentration is.
As I said, distilling itself isn't illegal but owning the equipment to do so is.
As well, liquor sold in Canada goes through the provincially owned liquor stores, and they only buy from distillers with the proper licenses and quality control mechanisms in place. If you have a liquor license, that allows you to resell alcohol that you buy from legitimate sources only, not homebrew.
It's certainly possible to make alcohol as strong as you wish, up to and including 100% if you distill it enough times. The point is that it's illegal to own and operate the equipment necessary to distill, and it's illegal to sell.
If you want to open up your own distillery, that's a separate issue. The rules and regulations on small vintners are already mind boggling. To distill your own would be a major commercial venture, I'm sure.
Dave, this is just a bad idea all around. I hope you believe me.