Correct, your churn would be artificially lowered, so you'd probably want to define a point where a "paused" subscription is effectively inactive and count that against churn.

It would still show in other metrics, however, as you'd have monthly active users (or accounts), which would take a hit. You'd also see a drop in MRR when an account is paused.

Bear in mind I'm assuming a business that wants clear, accurate metrics so the executive team know what actions to take; not simply a business looking to scam investors out of money ;-)