Canadian skipper Paul Gray, a defender, gave his side a shock lead on only three minutes after poor English defending from a corner.
But Barcelona Bullfighters striker Adam Carter equalised for England on the half-hour mark.
Despite their defensive flaws, the CSA World Champions played their flowing, attacking football to perfection, throwing absolutely everything at Canada keeper Ross Rogers until they were eventually rewarded when James Douglas scored from the spot after Erik Ouellet handballed in the area.
But once again, their defensive frailty was once again exposed when Marco Giontarella's pass found Danny Bellamy. England defenders tried to play offside but Bellamy was left unmarked and slotted the ball past custodian Chris Kolinski to cap another famous night in Canada's football history.
England: Simon Herding (Chris Kolinski 45); Danny Miller, John Macdonald, Daniel Perry (Steven Tweed 45), Ashton Reid; James Douglas, Garry Stratford (Kyle Johnson 68), Craig CraiCo (Kevin Coleman 82); Adam Carter (John Carey 72), Edward Redwood (Martin King 68).
Canada: Ross Rogers; Erik Ouellet, Brian Groves, Paul Gray, Danny Olsson (Nick Vassilidis 45); Hayden Thompson (Joe Smajto 62), John-Paul Fletcher, Marco Giontarella, Bobby Bricke; Danny Bellamy, Mike Szymkowiak (Kevin Maguire 86).
Referee: Matthew Stojanovich (Australia).