This is exactly how I (father of two) have used corporal punishment. It's largely there simply so I have "something worse" in store if you don't take your time-out. I think I've had to use it once every three years. Kids are awesome game players, if they know there is a limit on sanctions they'll play right to that limit.
But it is only a tool. You have to be consistent, and you have to be clear, and you have to be generally supportive. You can't expect of them things they can't do. All of that is probably more important than corporal punishment.
I am not advocating beating your kids, but if they are hell bent on testing the limits I think you have to show them that there is definitely a line that can not be crossed.