Can strategic uncertainty help deter tax evasion? An experiment on auditing rules

► We examine a bounded rule inducing strategy uncertainty among taxpayers. ► We experimentally compare the bounded rule with a flat-rate audit rule. ► Under the bounded rule, participants are informed of the maximum audit number. ► The bounded rule deters cheaters more effectively when strategic uncertainty is high. ► The evasion dynamics of the bounded rule differs from that of the flat-rate rule.