Clearing out Tax Payable acct paid with personal funds

Yes I agree but tax paid should not be shown in Tax Liability.

So where should tax paid be shown ?

tax paid is not shown as a liability. tax paid does not affect the liability in the tax summary. the liability still remains the same under reports irrespective of whether the tax payable is paid off or not.

Once we have paid up the tax, should it still be in Liability? because I have to get a statement of the total tax paid and once I have paid the tax, there should not be any liability. Even in tax transaction it shows as liability. Should it be that way or I am not understanding?

Tax Summary “liability” is the collection of tax components from sale & purchase transactions.
The payment of that liability to the tax authority is not a tax component of any sale of purchase transaction so it’s not an entry on the Tax Summary.

Yes it should be that way and you are not understanding.

so is there a report or a summary where we can see the whole picture of what we did with the taxes and when including the pay-off?

Yes, drill down on the Balance Sheet - Liability - Tax Payables account.
It shows the tax components of transactions plus the settling (payment) transaction.

If the Tax Payable account has a balance (say 230.00) at the end of tax period (say Jun 30) then amongst the Jul transactions you will see the payment (230.00) which offsets the Jun 30 balance.