The charge carries a maximum penalty of 10 years in prison.
Smith appeared in Auckland District Court yesterday where he pleaded not guilty to escaping custody and unlawfully obtaining a passport.
Yesterday's hearing was set to address issues of suppression surrounding the charge under the Passport Act of gaining a passport by supplying a misleading particular.
At Smith's first appearance a week ago, the police summary of facts was suppressed and prosecutor Shaurya Malaviya yesterday applied for that order to continue.
He said there was a lot of detail in the document which outlined specifics of the allegations into how Smith allegedly got hold of the passport.
But defence lawyer Tony Ellis said much of the information was already "in the public arena" and highlighted specific sections that should be withheld from the media.
He questioned whether trying to suppress material that had already been published was "hypocrisy or incompetence" by the police, but settled on "incompetence".
Judge Eddie Paul asked both lawyers to confer about a redacted version and said he would have the final word on what, if anything, could be released.
"[The summary] goes into tactical issues and issues of investigation," he said.
Smith's next court appearance, a case review, was originally set for February but Dr Ellis sought a delay until March.
Smith was caught in Rio de Janeiro on November 13 a week after allegedly fleeing New Zealand while on temporary release from Spring Hill Corrections Facility in South Auckland where he was serving a life term.
In 1995, he stabbed to death the father of a boy he had been sexually abusing, after tracking the family down to a Wellington house where they had moved to escape him.
Smith was on bail at the time for the sexual offending and charges of blackmail against a man who later killed himself.
Smith was on bail at the time for the sexual offending and charges of blackmail against a man who later killed himself.