Subfloor under toilet

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Hi,

I am getting a new floor installed in a kitchen and bathroom.
The installer recommends a 1/4" subfloor, but my suspicion is
that he just wants to do this beacuse removing the tiles will
take too long. So first question is if I can remove the old tiles
(had them tested... no asbestos) and the plywood underneath is not
delaminated can a new sheet vinyl floor go on top without a subfloor?
Second, if a subfloor is needed, will the wax ring on the toilet
flange make up the 1/4" difference or will the flange have to be
moved or extended somehow?

Thanks!
Chris Russo