Statement A is incorrect because Article 356 deals with the 'Provisions in case of failure of constitutional machinery in State' (President's Rule), not financial emergency. Financial emergency is proclaimed under Article 360. Statement B is also incorrect. While during a financial emergency the Union government can give directions regarding financial matters and reduction of salaries/allowances, Article 360 does not explicitly state that the President can suspend the provisions relating to the division of taxes between the Union and the States. The tax distribution framework laid out in the Constitution is not suspended, although the Union gains significant control over state finances through directions.