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Bingo we have a winner! IMHO that would be your best option in this situation. If the cat "disappears", that woman is likely to call the law. Depending on your local laws (non-agriculture, discharge of firearm,etc.) that could be trouble. Even if you are 100% legal, it's still a PIA. Take the cat in, if/when you are asked by the neighbor, tell her you trapped a feral cat and instead of shooting it out right, you did your civic duty and took it to the pound. It might have been hers, but all those darned "roof rabbits" look the same to you when they are trying to kill your animals. This way you are working within the system, and it has been documented in an official capacity.
Personally I have SSS in the past and will again if need be in the future. I generally only kill when I need to, some do just on principle. I live at the end of the road, everyone here shoots problem animals. Most but not all give warnings to owners if possible just to keep the peace, but everyone here understands "if it ain't on your property it's like to git shot".
I really like the idea of paint marking, I'm going to have to get a paint ball gun. I'm going to modify my normal system:
Step 1) Tell owner
Step 2) Paint mark animal (spray paint if in live trap)
Step 3) Provide dirt nap
If at any point my animals are in immediate danger of harm ,excess stress, or I can't dissuade predator to go away in the process of step 1 or 2, go immediately to step three.
Hummmm come to think of it, maybe step 2b should be to paint mark owner. In your case maybe you could just take the owner to the pound!
Swamp