The accepted definition of a veteran is someone who has gone through basic training and has been honourably discharged. That's the definition of a veteran. It's for recognition purposes. It's not for benefit purposes. There are other eligibility requirements to receive benefits, such as disability awards and the new Veterans Charter. But you're a veteran if you've served Canada, went through basic training, and have been honourably discharged.
A lot of people are veterans and don't realize it. To be recognized as a veteran is extremely important in terms of a person's well-being. Many modern veterans have told us that after they left the service, they didn't feel recognized. And when you don't feel recognized for something you've put your life on the line for, it can't have a very salutary effect on your mental health or your transition to civilian life.
Your question is very important. There are lots of implications to the answer.