QB Issue Resolution:

The income tax liability account should show the amount you owe to tax authority as beg balance.
When this amount increases you would debit income tax expense and credit income tax payable.
When you make a payment you would debit income tax payable and credit cash for amount paid.
Not sure what an ATO supplier account is.

Resolution for Issue 'Income tax payable vs Income tax expense' available: Yes (Solved).
Source: Intuit Community forum.

Income tax payable vs Income tax expense: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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