UPDATED 8.47AM New Zealand is not a tax haven, says the man who reviewed the country's foreign trust regime in the wake of the Panama Papers document dump.

LISTEN ABOVE: Transparency International's Suzanne Snively speaks with Rachel Smalley about the Shewan report

That conclusion, just one from the 136-page review which former PwC chairman John Shewan released yesterday, could well be seized upon by Prime Minister John Key and Revenue Minister Michael Woodhouse.

Both had earlier rubbished claims that this country fitted that description when it was labelled a tax haven by the group of journalists that sifted through the 11.5 million records leaked from Panama law firm Mossack Fonseca.

Shewan's view, however, should be of cold comfort to the pair, particularly because he says it doesn't mean the Government can sit on its hands.

"The fact that New Zealand is not a tax haven is not a basis for leaving the foreign trust disclosure rules as they are," he said.

Shewan says the "significant debate" over whether New Zealand should be labelled a tax haven is a good illustration of why the Organisation for Economic Co-operation and Development doesn't favour the term anymore.

SEE ALSO: Shake-up of foreign trusts on the cards following review

The inquiry is also contesting suggestions New Zealand has suffered reputational damage as a result of the Panama Papers revelations.

Shewan has ruled existing disclosure rules are inadequate and has found fault with enforcement of current rules. It's also recommending disclosure requirements for such trusts be significantly extended.

But the inquiry disputes suggestions the country has suffered long-term reputational damage from being perceived in the media as a tax haven.

It said a review of international media doesn't support that conclusion, and with the exception of a small number of articles in the Australian media, references to New Zealand in the international press appear to have been cursory.

LISTEN: Geoff Nightingale: Shewan report shows the world we're not facilitating tax avoidance

New Zealand First is unimpressed with the quality of the report, with party leader Winston Peters dismissing it and its findings, saying it tells us less than what we already knew.

He said the report, which calls current disclosure rules inadequate, is light-handed, soft and doesn't get to the point.

Mr Peters said the reason John Shewan didn't find direct evidence of illicit activity is because he was never given the power to find it.

"He didn't find any evidence of illicit funds because he was never given the powers to find those illicit funds."

The Prime Minister is being challenged over his interpretation of findings in the report.

John Key doesn't think the findings of a review of the country's foreign trusts regime contradict what the Government has previously said about it.

He said John Shewan's report agrees with the perspective New Zealand is not a tax haven.

Mr Key said he said that there was full disclosure of information, and there is when it's asked for - although the report wants it made easier for people to ask for the information.

"I said we have a strong tax treaty and tax information network - well we do. And that New Zealand shares information with countries who ask - well we do, and that we're very different from places that are true tax havens, that are lock boxed and won't give people information, that's true."

But Green Party Co-leader James Shaw disagrees.

"He said that the report says that it isn't a tax haven but actually the report says it's being used as a tax haven. So it's one of those situations where you can call it one think but if it looks like a tax haven, and it smells like a tax haven, people are using it as a tax haven, then to all intents and purposes, New Zealand is a tax haven."

The Labour Party believes the Prime Minister has been caught out on foreign trusts.

Labour MP Grant Robertson said the Prime Minister's initial reaction when the Panama Papers came out was to serve and protect the interests of the foreign trusts industry rather than protect the country's taxation reputation.

"He's now been forced to eat humble pie. John Shewan has said that our transparency regime is inadequate and the changes proposed here will be helpful."

Confidentiality orders have been applied to evidence given to the investigation.

Mr Shewan has issued a minute regarding his inquiry and evidence given to it by the Department of Internal Affairs.

It bans the publication of any audit reports provided by the DIA under anti-money laundering and anti terror financing legislation.

It also restricts public access to those reports.

Commercial sensitivity reasons and protecting the inquiry's integrity are being given as reasons for the restrictions.