The animal shelter was notified by the council on January 24 when it applied for registration that it also needed to apply for a planning permit.

Two permits are required to operate a business - a planning permit for permission to operate, and a second is required under the Domestic Animals Act, which relates to the day-to-day management of the shelter.

At the moment the shelter does not have either permit.

The council said it had asked proprietor Trish Burke to contact it by Wednesday last week to discuss trading beyond February 29, but she failed to do so.

Council assets and environment director Dale Thornton said officials made several unsuccessful attempts to contact her.

"If they continue to trade after February 29 then they are in breach of the Domestic Animals Act and we will take appropriate action."

Ms Burke has previously told the Weekly she provides a "huge" community service to Woodend.

"Council set me up as a shelter and gave me a permit so I could take their animals. Back then everything was fine. But they have tortured me since 2009."

She said the concept of Pets Haven was to bring a pound and animal shelter together for the community.

Ms Burke's lawyer Kurt Faulkenstein claimed the council had "failed" in its responsibilities as an authority.

He was investigating taking the matter to VCAT and the Victorian Ombudsman.

"Rather than responding to me with anything difficult, they [Macedon Ranges Council] go straight back to Trish, who is highly agitated and stressed," he said.

"They don't respond to our letters or requests and they continue to harass Trish in a manner that is inconsistent with the Victorian Equal Opportunity and Human Rights Commission of proper operation of a local authority."