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The taxpayer does not have to vary the amount or claim a variation credit. Explain why...

The taxpayer does not have to vary the amount or claim a variation credit. Explain why the taxpayer might choose to do so or not do so.You need to explain why the taxpayer might choose not to vary their instalment rate. 60–80 words

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Answer #1

If the taxpayer chooses not to vary their instalment rate, then the best possible reason for it may be no or very nominal change in business circumstances. Sales and expected income of business are anticipated to remain the same from period to period. Instalment rate is likely to vary in case of drastic change in sales and expected income (too little or too much) from one period to another, which has a direct impact on the estimated amount of income tax.

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