The dust has far from settled on the issue of foreign trusts, as MPs continue to argue over the findings of the Shewan report.

The report described New Zealand's foreign trust disclosure rules as inadequate, and has said it is possible they're being used for tax evasion and to hide illicit funds.

SEE ALSO: Shewan Inquiry: NZ is not a tax haven

Labour leader Andrew Little is adamant the conclusion that can be drawn from the report is that New Zealand is being used as a tax haven.

"When everybody else describes us as one, then we probably are one. It's the old duck test - if it waddles and quacks and has feathers, then it probably is one."

But that view is flatly rejected by Revenue Minister Michael Woodhouse.

"It is scurrilous, it is wrong, and it's also consistent with a pattern I think of derogatory comments coming from the leader of the opposition."

Mr Woodhouse is making it clear the report's recommendations for improved rules around disclosure will be adopted.

"I can say there is none of the recommendations that I can say we won't be following."

This is being welcomed by Green MP Julie-Anne Genter, although she said they were recommendations her party has previously made and had been called 'barking mad' by the Government.

"But, when it's in a report that they've commissioned from a tax expert, they're willing to accept it."

New Zealand First leader Winston Peters is claiming the Prime Minister has been caught out and embarrassed over the prevalence of foreign trusts residing in New Zealand.

Mr Peters said thousands of foreign trusts had been flocking here to be formed and built up at a factor of 500 percent in recent years.

"Mr Key looked like somebody, some boy, who'd been widdling behind the couch, and he's trying to tell mum the cat did it."