Jetcruiser,
I know of only one provision for legal willful violation of CAR's.
It is known as the emergency authority of the pilot-in-command. In an actual emergency, the pilot-in-command has the authority to disregard regulations as far as necessary in the interest of safety. It is not even necessary to report the violation in writing unless requested by the civil aviation authority.
If your flying school violates the CAR's by sending student pilots up with "safety pilots" in the interest of safety, please explain what the emergency was.
Is the emergency generated in the hangar before the flight, thereby giving the "safety pilot" the authority to fly illegally with a student pilot on a "solo" flight?