Sex-disaggregating Tax Administrative Data

Investment Rating - The report does not explicitly provide an investment rating for the industry. Core Insights - The 2022 Colombian Tax Reform mandated the National Tax and Customs Authority (DIAN) to conduct gender-focused studies, leading to the establishment of institutional structures and strategies for sex-disaggregation in tax data [8][20]. - DIAN's experience in sex-disaggregating tax data aims to provide lessons for other revenue administrations and government agencies [8][20]. - The report highlights the importance of integrating gender perspectives into tax policies to promote inclusive economic growth and sustainable development [6][8]. Summary by Sections 1. Tax Data Disaggregation - DIAN has faced limitations in integrating gender-focused analysis into tax data, collaborating with the National Civil Registry to identify taxpayer sex under a restrictive information agreement [9][10]. - The latest strategy for disaggregating personal income tax data by sex involved merging taxpayer and pension data, using ID number rules, and applying a name-based algorithm [10][11]. 2. Data Disaggregation by Gender Identity - Since 2022, DIAN has invited taxpayers to voluntarily report their sex in four categories (male, female, non-binary, transgender) in tax returns, with about 1 million individuals declaring their sex in 2023 [13][14]. - The self-declaration option has been discontinued due to sensitivity concerns, and DIAN now retrieves this data from identity documents in the National Civil Registry [13][50]. 3. Lessons Learned - Key lessons from DIAN's experience include the importance of political commitment, competent technical staff, and inter-agency collaboration for effective data sharing [16][78]. - Challenges include the voluntary nature of self-reporting, sensitivity of information, and the need for accurate prediction models for sex classification [16][80]. 4. Methodologies and Institutional Strategies - DIAN's methodologies for data disaggregation evolved over time, with significant reforms and the establishment of working groups to handle data disaggregation [28][51]. - The report outlines the legal reforms and institutional strategies that facilitated the collection and analysis of sex-disaggregated data [28][51]. 5. Use of Disaggregated Data - The disaggregated data is utilized for internal analysis and policy evaluation, providing insights into gender differences in income distribution and wealth [59][60]. - Future analyses will focus on various tax regimes and additional factors such as marital status to enhance understanding of tax data by sex [65][66].